Air Lease (AL) has moved sideways for much of the past year, but the price action in the past month or so has turned more positive. If you like to get into a stock early in a move, then look closely at AL right now.
In this daily chart of AL, above, you can see how previous rallies above the declining 200-day moving average line have failed. Prices closed above 200-day average earlier this month, but now the slope of the 200-day average line is turning positive. The stock is also above the rising 50-day moving average line and the two lines are close to crossing for a bullish golden cross signal.
In the middle panel is the On-Balance-Volume (OBV) line. The line is not moving up strongly. However, if you look closely you can see that it has made a new high for the move up and I count that as a positive. In the bottom panel is the Moving Average Convergence Divergence (MACD) oscillator, which is rising and above the zero line.
In this weekly chart of AL, above, we have some more bullish clues. AL is trading above the rising 40-week moving average line. The weekly OBV line is neutral to slightly positive. The weekly moving average convergence divergence (MACD) oscillator is below the zero line, but it is close to crossing the line for an outright go long signal.
Strategy: go long AL here and risk a move back below $28; $34 and then $39 are our upside price targets.