Shares of American Express were notable decliners during the trading session today. The stock plunged by close to 6 percent on high volumes which is considered to be a negative sign. The plunge in the stock was on the back of the company reporting quarterly results which were lower than most street estimates which was seen as a huge negative by traders and investors. The plunge in the stock was a clear indication of the shift of momentum towards the sell side. The slide was a clear under performance for the stock as compared to the broader markets which surged during the trading session.
American Express reported a 16 percent drop in profits as compared to a year earlier missing most analyst estimates as the credit card company was hurt by higher expenses and remains under pressure from the strong US dollar. The company also cut its full year guidance which was seen as a huge negative. AmEx said that its had net income attributable to common shareholders of $1.23 billion as compared to a reading of $1.466 billion in the same period last year. On a per share basis the company earned $1.24 per share which was lower than street expectations of $1.31 per share.
When looking at the daily charts for American Express, the stock has been in a strong downtrend and has been forming lower lows and lower highs which is indicative of the fact that bears are in total control at the current moment. The stock currently trades below all important daily moving averages which is considered to be bearish signal. On the back of the price volume action, the stock has broken below important support levels. Traders and chartists on the street believe that the stock could head to levels of $68 in the near term.