American Express - first of the big financial services firms to report Q1 earnings tomorrow

Taking a look at American Express as we are diving deeper into the Q1 earnings season. AMEX’s share price currently trades around $218.58 a share. Based on the daily chart, we can see that it has approached a vital support level (highlighted by the yellow oval). This support finds itself right along the supportive trendline, which will play a significant role in the near-term price movement. A break and close below it would certainly encourage profit-taking, most likely leading to a decline towards$209.56 and maybe even $204.94. Although, there will be more insight once the earnings and future guidance are out. Towards the upside, if we see a bounce of this trendline then the all-time high of $232.41 would be the target. However, the stock has found this to be a resistance point, which may not necessarily be easy to overcome with the current market sentiment. Looking at the technical indicators, they are suggesting a mixed outlook, which is common right ahead of the earnings call. The MACD is negative and the RSI is flat reading 47. American Express is expected to report an EPS of $2.95 on revenue of $15.79bn.