The broader market continues to show signs of extension, with the QQQ sitting at +3 ATR ahead of this week’s critical FOMC meeting.

At these elevated levels, we typically see some form of pullback to key moving averages, especially during OpEx week. However, this doesn’t necessarily mean a broad market decline – we could see rotation between sectors.

While others chase extended names, I’ve identified a premium setup in American Express (AXP) that’s showing excellent technical alignment.

Why AXP?

• Strong uptrend pattern (bottom left to upper right)
• Testing key 20MA support around $301
• Near all-time highs with momentum
• Clean technical pattern formation
• Appearing on our A+ squeeze scanner

Here’s what I’m watching:

(Click to enlarge)

The Setup:

• Looking to get long around $301
• Stop on a daily close under $296-297
• Target at the 1.272 Fibonacci extension at $311

For options traders, I’m looking at the January 17th $300 calls.

I’ll alert Daily Profits Live members when or if I get in.

These provide adequate time for the setup to play out while maintaining good positioning near our entry level.

For my full take, click the image below to watch my video breakdown.

YOUR ACTION PLAN

I’ll be watching for entry around the $301 level with clearly defined risk parameters. And if I do play this, it will be with call options.

This setup offers a solid risk/reward ratio in a strong name showing premium technical alignment.

Want to see how I trade setups like this in real-time?

Click here to join me in my trading room where I break down these opportunities LIVE.

TESTIMONIAL TUESDAY

“Thanks Brian, that was a quick 12% profit in less than 30 minutes”
– SteveS

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