The airlines as a whole recently have been soft, but the company below may have it right. They lease commercial airliners and by the looks of its chart its been anything but a turbulent ride, pun intended. The chart is at an inflection point here as it spoons its 50 day SMA, but it has acted a bit shaky since the bearish engulfing week ending 2/24 at the round 40 number. Bulls may be rightfully concerned that a double top may have been formed as that figure presented problems back in February and May of ’15. Directly below is the chart how it was offered in our Monday 3/13 Game Plan and then further below a more current take.
Stocks that can be bought as they retest prior cup base breakouts are AL. AL is an industrial play higher by 13% YTD and 23% over the last one year period and sports a small dividend yield of .8%. It has posted three consecutive positive earnings reactions of 5.4, 2.4 and 6.3% on 11/4, 8/5 and 5/6 before a most recent loss of 2.9% on 2/24. The stock is higher 15 of the last 24 weeks, but only weekly CLOSES above round 40 number were ending 5/30-6/614 and 5/15/15. AL broke above a 37.34 cup base trigger on 2/9 and look to enter on a pullback toward the pivot at 37.75. It has recorded just 3 daily closes above in last 2 years and add to above a 40.34 trigger in a double bottom with handle pattern which began the week ending 6/16/14.