Bull Chart of the Day -- Invest in American Express

NEW YORK (Real Money) -- The daisy market continues, as traders pick off petal by petal. We love the market. We love the market not. Today, we are back on the love petal. Needless to say, today there are more strong charts, with only some weakness in the metals and some profit-taking in the cybersecurity names.

I like American Express (AXP) here. This hasn't been a strong name in 2015, but finally it is showing some signs of a reversal. I see three ways to play it outside of just buying the stock and using one of two stops, $79 or $77. The price breakout is key. The bulls do need to hold the breakout today and into tomorrow -- no close under $81 is what we want to see. This will get the attention of some momentum players as the stock breaks over resistance and the upper Bollinger Band starts to expand.

The relative strength index (RSI) has been in a steady uptrend of higher lows, but we should see this break recent highs even before price. The upside target here is $85-$86. A close back under $81 keeps the stock contained in the current price channel, but a close under $79 is a very big yellow flag. Anything under $77 and the bulls might need a Buffet rescue as the stock would look like a short with a $70 target.

As far as some different approaches, I mapped out three this morning. The simple approach outside of buying the stock is to buy August $80 calls around $2.95. This is a very similar risk to buying the stock and stopping on a close under $79. The downside is you won't receive any dividends and there will be some time decay; however, from a risk-return standpoint, this is a pretty good one for a bull play over the next month. As we move into mid-July, I would look to roll the call out in time.

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