ALL closes above its opening price after recovering from early selling pressure
Allstate Corporation (ALL) Technical Analysis Report for Feb 21, 2020 | by Techniquant Editorial Team
ALL ended the week -1.55% lower at 123.62 after gaining $0.16 (0.13%) today, significantly outperforming the S&P 500 (-1.05%). Trading up to $0.37 lower after the open, Allstate managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 24th, ALL actually lost -1.44% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ALL as at Feb 21, 2020):
Friday's trading range has been $1.11 (0.9%), that's below the last trading month's daily average range of $1.61. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALL.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move lower than 123.05 in the previous session, the market found buyers again around the same price level today at 122.92.
While the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Allstate. Out of 432 times, ALL closed higher 52.78% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.73% with an average market move of 0.79%.