📊 **To view my confluences and linework:**
Step 1️⃣: Grab the chart
Step 2️⃣: Unhide Group 1 in the object tree
Step 3️⃣: Hide and unhide specific confluences one by one
💡 **Pro tip:** Double-click the screen to reveal RSI, MFI, CVD, and OBV indicators alongside divergence markings! 🎯
⚡ AXP: Bears Trapped at VWAP - Spring Coils Before Q3 Blast
The Market Participant Battle:
Sellers came from the highs at Point 3 ($345-350 area) and pushed price down to test the proven support at Point 2 ($324-326 area). However, the bears are now trapped! 🐻⚠️ When Point 3 closed above Point 1, it validated Point 2 as a battlefield where buyers decisively defeated sellers. Now at Point 4, we've returned to this exact support zone - but this time, the bears are fighting a losing battle. Despite making a lower low in price, bulls are secretly accumulating as shown by higher lows in RSI, MFI, and CVD. The spring is coiling for a violent move back toward $340-350+ as trapped bears scramble to cover their positions before the October 17th earnings catalyst! 🚀
Confluences:
Confluence 1: Triple Momentum Divergence (RSI, MFI, CVD) ✔
The 4-hour chart reveals a powerful triple bullish divergence across all momentum indicators! While price made a lower low from Point 4 to the current candle, RSI printed a higher low, MFI confirmed with a higher low, and CVD (Cumulative Volume Delta) also made a higher low. This is textbook accumulation - institutions are quietly buying while price appears weak. Both RSI and MFI are in oversold territory, setting up the perfect catapult for the next leg higher. The CVD divergence is particularly significant as it shows buying pressure is building despite the bearish price action facade. This confluence STRONGLY AGREES ✔ with the long thesis!
Confluence 2: Volume Profile Value Area High Rejection 📊✔
Placing the volume profile on the range from Point 1 to Point 3 reveals something crucial: price has repeatedly rejected off the Value Area High during the rise. This VAH acts as a magnet - and we're currently sitting well below it around Point 4. The POC (Point of Control) sits in the middle of our 1->3 range, meaning maximum volume/participation occurred there. Now we're back at the support level with room to run back toward the VAH. This confluence AGREES ✔ with the reversal setup!
Confluence 3: Anchored VWAP Standard Deviation Support 🎯✔
The anchored VWAP from Point 1 shows we've pulled back perfectly to the 1st standard deviation - a mathematically significant support level where institutions often add to positions. Both the current bearish candle and previous bullish candle respected this level precisely. This is institutional footprint territory, and the bounce from here has high probability of continuation. The VWAP is rising, confirming the uptrend structure. This confluence AGREES ✔ with the long setup!
Confluence 4: OBV Bollinger Band Touch (Extreme Oversold) 📉✔
The On-Balance-Volume indicator has touched its lower Bollinger band in the oscillator panel - a signal that selling momentum has reached an extreme and is likely to reverse. OBV measures cumulative buying/selling pressure, and when it hits these extremes, reversals are highly probable. Combined with the CVD divergence, this paints a picture of exhausted sellers and ready buyers. AGREES ✔!
Confluence 5: 200-Bar Uptrend Remains Intact 📈✔
The broader trend analysis reveals we've been uptrending from the past 200 bars, and the current pullback is simply a higher low within that structure. The trendline support (shown in Image 3) confirms this - we're testing the ascending trendline from below while it acts as dynamic support. Trend is your friend, and this trend says UP! This confluence AGREES ✔ with taking the long!
Confluence 6: Hourly Timeframe Absorption & Price Refusal 💪✔
The 1-hour volume footprint (Image 4) reveals something critical: we have bullish absorption of a large bear candle PLUS multiple bars refusing to push lower. This is institutional accumulation in real-time. The delta numbers show buying on the lows despite red candles printing. When you see this kind of absorption with price refusing to make new lows, it's a major tell that smart money is loading up. This confluence STRONGLY AGREES ✔!
Web Research Findings:
- **Technical Analysis**: AXP is showing strong technical signals with 26 technical indicators signaling bullish, and multiple analysts noting the stock has broken resistance at $326 and is in a rising trend channel. The RSI is at 69.64, indicating neutral but healthy momentum . The stock has recently broken up through resistance at $326, which predicts further rise with support now at that level .
- **Recent Earnings**: CRITICAL CATALYST: AXP will report Q3 2025 earnings on October 17, 2025 (11 days away!) at 8:30 AM ET . Q2 2025 earnings beat expectations with EPS of $4.08 vs $3.87 forecast and revenue of $17.86B exceeding $17.7B estimate. The company reaffirmed full-year revenue growth guidance of 8-10% and EPS guidance between $15-$15.50 . However, shares fell 3.17% in pre-market trading after Q2 earnings despite the beat , showing typical "sell the news" behavior.
- **Analyst Sentiment**: Consensus among 20-21 analysts is "BUY" with an average price target of $314.45, which is 4.85% below current levels around $330 . Recent technical analysis shows 13 buy signals, 2 sell signals, and 2 neutral signals - strongly bullish positioning .
- **Data Releases & Economic Calendar**: The Federal Reserve cut rates by 0.25% in September 2025, bringing the target range to 4.00-4.25%. Current Fed funds rate stands at 4.25%-4.50% as of July meeting . No major economic releases scheduled before the October 17 earnings that would significantly impact AXP.
- **Interest Rate Impact**: The Fed has started easing cycle with recent rate cut, though inflation remains somewhat elevated. The committee judges downside risks to employment have risen . Lower rates are generally positive for financial services companies like AXP as it can boost consumer spending and reduce funding costs.
Layman's Summary:
Here's what all this means in simple terms for THIS trade: American Express is a financial powerhouse that just beat earnings expectations again and reaffirmed strong growth guidance. The stock is technically strong - it broke through a major resistance level at $326 which now becomes support. We're getting a healthy pullback to test that support right before earnings in 11 days. The Fed is cutting rates which helps financial companies. HOWEVER, there's a catch - when AXP beat earnings last quarter, the stock actually FELL 3% the next day! This is "sell the news" behavior. So while the technical setup is pristine RIGHT NOW, you need to decide if you want to hold through the October 17 earnings or take profits before then. The analysts have price targets slightly below current levels ($314 vs $330), but their "BUY" ratings suggest they still see upside. The key risk is that earnings binary event - even good news could cause a drop. The reward is that a surprise beat or guidance raise could rocket the stock higher.
Machine Derived Information:
- **Image 1** (4H Chart with Indicators): Shows numbered points 1-4 with RSI, MFI, CVD, and OBV panels displaying clear bullish divergences. Price made lower low but all momentum indicators made higher lows. - **Significance**: This is classic accumulation divergence indicating institutional buying on weakness. The OBV touching lower Bollinger band confirms oversold conditions. - **AGREES ✔**
- **Image 2** (4H Chart with Volume Profile & VWAP): Displays volume profile on 1->3 range showing Value Area High rejection, plus anchored VWAP from Point 1 with price testing 1st standard deviation support. - **Significance**: Volume profile shows price has room to run back toward VAH, while VWAP standard deviation provides institutional support level. The profile structure confirms this is a high-probability mean reversion setup. - **AGREES ✔**
- **Image 3** (4H Chart with Trendlines): Broader view showing 200-bar uptrend with ascending trendline support. Trend indicator panel shows strong uptrend across multiple timeframes (50, 100, 150 bars all green). - **Significance**: The higher timeframe trend context confirms this pullback is a retest of trendline support within an established uptrend. Trend strength indicators all confirm bullish structure. - **AGREES ✔**
- **Image 4** (1H Volume Footprint): Detailed order flow showing volume delta clusters with boxes indicating large trades. Shows bullish absorption of bear candle and multiple bars refusing lower prices. - **Significance**: The footprint reveals institutional accumulation with positive delta on red candles and price refusal to make new lows despite selling attempts. This is smart money loading up. - **STRONGLY AGREES ✔**
Actionable Machine Summary:
The machine-derived analysis paints a VERY bullish picture: We have quadruple confluence (RSI, MFI, CVD, OBV) all showing oversold conditions and bullish divergences. The volume profile structure confirms we're at support with room to run higher. The VWAP acts as dynamic support from institutions. The trend remains bullish across all timeframes. And the 1-hour footprint shows THE most important signal - actual institutional buying despite weak price action. When you see accumulation divergences + volume support + trend structure + order flow absorption all aligned, you have a high-probability setup. The entry is NOW at current levels ($330 area), stop loss below the recent low around $320-322, and first target is $340-345 (Point 3 area). Second target is $350+. However, you MUST decide your earnings play strategy before October 17.
Conclusion:
**Trade Prediction: SUCCESS ✅**
**Confidence: MEDIUM-HIGH (75%)**
**Key Reasons for Success:**
1. **Technical Perfection**: Six independent confluences all aligned - divergences, volume profile, VWAP, OBV oversold, uptrend structure, and 1H absorption. This is textbook bullish setup.
2. **Strong Fundamentals**: Company beat earnings, reaffirmed guidance, shows resilient consumer spending, and benefits from Fed rate cuts. Q2 delivered record revenue of $17.9B (+9% YoY) with strong card member spending up 7% .
3. **Institutional Accumulation**: The order flow and CVD data clearly show smart money buying on this weakness. When institutions accumulate, retail should follow.
4. **Support Level Confluence**: We're at the intersection of proven prior support (Point 2), VWAP standard deviation, volume profile support, and ascending trendline - multiple layers of support at one price level.
5. **Momentum Reversal**: All three momentum indicators (RSI, MFI, CVD) diverging bullishly while OBV hits extreme oversold on Bollinger band = high probability of sharp reversal.
**Key Risks/Reasons for Caution:**
1. **EARNINGS BINARY EVENT (October 17)**: This is your BIGGEST risk! Last quarter, AXP fell 3.17% despite beating earnings - classic "sell the news" behavior. You MUST have an earnings strategy.
2. **Analyst Targets Below Current Price**: Average analyst target is $314.45 vs current $330 - suggests potential downside if momentum fades.
3. **At Resistance Zone**: Stock is near resistance from accumulated volume at $325.61 and at long-term resistance trendline that extends back to the 1970s where investors have historically taken profits .
4. **"Sell-The-News" History**: Even with strong earnings, financial stocks often drop on the announcement. You need to decide if you're a swing trader (close before earnings) or position trader (hold through earnings).
5. **Recent Momentum Stalling**: Some technical analysts note "weak near-term sentiment could catalyze bearish positioning" with a mid-channel oscillation pattern .
**Risk/Reward Assessment: ⭐⭐⭐⭐ (4/5 Stars)**
- **Entry**: $329-331 area (current)
- **Stop Loss**: $320-322 (below recent low and VWAP)
- **Target 1**: $340-345 (Point 3 retest / 3-5% gain)
- **Target 2**: $350-355 (breakout / 6-8% gain)
- **Risk**: ~$8-10 per share (2.5-3%)
- **Reward**: $10-20+ per share (3-8%)
- **R/R Ratio**: 1:2 to 1:3 (Excellent!)
**Final Recommendation: TAKE THE TRADE WITH EARNINGS STRATEGY ⚡**
This setup is TOO CLEAN to ignore. You have 6-7 aligned confluences, clear institutional footprint, oversold conditions, and multiple support levels converging. The technical setup is pristine for a bounce to $340-350+.
**However, you MUST choose your earnings strategy:**
**Option A - Swing Trade (Lower Risk)**: Take the trade NOW, target 50% position exit at $340 (Point 3), and CLOSE remaining 50% by October 16 before earnings. Lock in 3-5% gains and avoid the binary event. **RECOMMENDED FOR MOST TRADERS** ✅
**Option B - Position Trade (Higher Risk/Reward)**: Take the trade NOW, target $340, but HOLD through earnings if thesis remains intact. If earnings beat + guidance raise, target $355-360. This requires strong conviction and wider stops. Risk is higher but reward could be 10-15%+. **ONLY for experienced traders comfortable with binary events** ⚠️
**Option C - Post-Earnings Play**: Wait for earnings reaction on October 17. If stock dips on "sell the news," enter on the pullback for a lower-risk entry. Potential to enter at $310-320 with similar upside. **MOST CONSERVATIVE approach** 🛡️
**My Take**: The setup is TOO good not to take. I'd enter 70% of position size NOW at $329-331, place stop at $322, and target the $340-345 zone. **Close 50% of position by October 16** to lock gains and reduce risk. Let the remaining 20% ride through earnings with a trailing stop. This way you capture the technical bounce but limit earnings exposure.
The bears are trapped, the spring is coiled, and institutions are loading up. Just respect the earnings risk and trade accordingly! 🎯⚡
**Action: TAKE THE TRADE (with earnings risk management)** 🟢