American Express Company (NYSE: AXP), the global credit card giant, is set to surge higher. Shares of the charge card company have had a tough time breaking out above the $102 to $103 price level, as indicated by the red resistance line on the chart below.
Once the shares clearly break through the red resistance line, we are looking for the stock to hit $116 in quick fashion. The price target of $14 above the red line on the chart comes from the height of the ascending triangle pattern – from the red line to the start of the green line. That’s roughly $14 per share. A $14 rally from current levels would be a 13% gain for the stock.
The bottom line is that American Express stock is set to break out. It may take a few more days, but eventually, this ascending triangle pattern will be broken, and shares should move rapidly from there. If the breakout is to the upside, the stock is set to rally double digits in the coming weeks.
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