Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines in Asia, the Pacific Rim, Latin America, the Middle East, Europe, Africa, and North America. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines. In addition, it provides fleet management services to investors and owners of aircraft portfolios.
Take a look at the 1-year chart of Air (NYSE: AL) below with added notations:
AL has been trading mostly sideways over the past 3 months. While in the sideways range, the stock has formed a support area near $27 (green) and a clear resistance level at $30 (red). At some point, the stock will have to break out of the current trading range.
Join our new Linkedin Group by clicking the link below:
The Tale of the Tape: AL is trading within a small sideways range. The possible long positions on the stock would be either on a pullback to the $27 area, or on a breakout above $30. The ideal short opportunity would be on a break below $27.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach