Lear Corp. (LEA) is on the verge of an upside breakout and further gains. Now that I have your attention let's check out the latest charts and indicators for this car seating and electrical systems' maker.
In this daily bar chart of LEA, below, we can see an uptrend the past 12 months. The trend is not super strong with prices doubling in less than a year but it is dependable with rallies and sideways consolidations. Prices have been in a sideways consolidation pattern since the beginning of 2018 with prices crossing above and below the 50-day moving average line. The rising 200-day average line is below the market and was last tested in June and August.
The daily On-Balance-Volume (OBV) line shows a strong rise from April to the end of September and then is largely flat or neutral. The trend-following Moving Average Convergence Divergence (MACD) oscillator largely hugs the zero line the past year but recently turned up for a fresh go long signal.
In this weekly bar chart of LEA, below, shows the real strength of this security - rallying from below $100 back in 2015 to over $200 this year. LEA is above the rising 40-week moving average line and we can see tests of the line in 2016 and 2017.
The weekly OBV line shows a stronger pattern than the daily data with new highs being made in the past few weeks. It looks like the strong OBV line is leading the price action now.
The weekly Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for nearly two years and is currently narrowing towards a possible future crossover buy signal.
In this Point and Figure chart of LEA, below, we can see a bullish consolidation pattern. Prices have been making higher lows and an upside breakout happens with a trade at $195.49. An upside price target of $220.40 is being indicated.
Bottom line: LEA has already performed strongly but further gains lie ahead, according to the charts. Traders could go long LEA above $195, look for gains to the $220 area. Risk below $185 for traders and below $180 for investors.