Many Elliotticians believe that the US stock market is nearing the end of fives waves up from the 2009 low. We already looked at Boeing (BA) and 3M (MMM). Let’s take a look at another Dow 30 component, American Express (AXP).
The following is my Elliott Wave interpretation of American Express stock (ticker AXP) utilizing a combination of Elliott Wave and its associated Fibonacci price targets. (Click on the pic to enlarge).
Hurst Cycle analysis appears to be somewhat ambiguous on this one, as different starting points in the analysis create substantially different future expectations. My preference, therefore, is to expect Amex stock to continue along the same general lines as the large cap stocks I’ve posted about recently, as well as the Dow Jones Industrial Average index itself.
That means that a black (intermediate degree) wave 4 to the downside into the 3rd quarter is due next, followed by a 5th black wave up into the first quarter of 2018 to finish the structure. The internal subdivisions of the price action since the February 2016 low, and the resulting Fibonacci price targets are suggesting exactly that. Notice that the most typical Fibonacci target for black (intermediate) wave 3, where it would be 1.618 times the length of wave 1 (@ $84.80) appears to be acting as resistance at this time.
This is the third in a series of posts featuring my analysis of individual large-cap Dow component stocks. Expect another one within a few days.