Schaeffer's Street Stories: Is Pessimism Too Extreme Toward American Express Company?

CINCINNATI--(BUSINESS WIRE)--So far, 2008 has not been kind to financial giant American Express Company (NYSE: AXP), as the shares have retreated more than 54% since the start of the year, outpacing the S&P 500 Index's (SPX) loss of 38.7%. In fact, the security has been trapped in a steep downtrend under its 10-week and 20-week trendlines since July 2007, resulting in a loss of more than 63%. However, the security is currently in the process of bouncing back. The stock has conquered its 10-week trendline and has pegged its sights on its 20-week moving average, which is more than 14% above the shares.

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