Shares of American Express (AXP) - Get Report are down 2.5% on Friday, falling to $125.23 in midday trading after the company reported earnings.

After hitting new 52-week highs of $129.43 earlier in the week, the stock is backing off those levels now. The company's second-quarter earnings of $2.07 per share beat analysts' expectations by 5 cents. Revenue of $10.83 billion grew 8.3% year-over-year and slightly missed estimates by $30 million.

Despite the fall in American Express stock, Visa (V) - Get Report and MasterCard (MA) - Get Report are holding up on the day.

The company issued full-year guidance of $7.85 to $8.35 per share. With a midpoint of $8.10 per share, that came up slightly short of consensus expectations at $8.13 per share. Management expects revenue growth of 8% to 10%, while the consensus sits at 8%.

The guidance is mostly in-line with expectations, as was the most recent quarterly results. That's likely leading to some profit taking in the name, given how well American Express stock has done lately. Shares are up 31.25% so far this year, outpacing the S&P 500's gain of 19.6%.

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Trading American Express Stock

Daily chart of American Express stock.

American Express stock is backing off its highs, but I would argue that it's not because of earnings. That's what's fueling Friday's action, but the stock began its pullback earlier this week once it hit channel resistance (blue line).

This level has been in play for most of the year, making the pullback unsurprising to say the least. The question now becomes, where do investors buy AXP stock?

Shares broke below, but are working to reclaim the 21-day moving average as we speak. If the stock can hold up above this level -- currently at $125.46 -- that bodes well for the bulls and American Express may bounce to retest the highs. The 21-day has been support for all of 2019, with a few days in May being the exception.

In that instance, the 50-day was an excellent level of support. Should AXP fail to hold its 21-day and take out Friday's low, the next logical spot to watch is a test of the 50-day for a buying opportunity. Below that and AXP could be in for a more prolonged decline.

Should support hold -- either the 21-day or 50-day moving averages -- see if AXP can rally back up and take out its highs set earlier this month. If it can, a test of channel resistance (blue line) could be in the cards.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.