ALL closes within prior day's range after lackluster session
Allstate Corporation (ALL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ALL ended the week -0.59% lower at 94.82 after gaining $0.69 (0.73%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.74 lower after the open, Allstate managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ALL as at May 22, 2020):
Friday's trading range has been $2.37 (2.51%), that's below the last trading month's daily average range of $3.34. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ALL.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on March 10th, ALL actually lost -6.54% on the following trading day.
The stock managed to close back above the 50-day moving average at 94.40.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the nearby swing low at 92.08 where further sell stops might get activated.
Among the six 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 431 times, ALL closed higher 52.44% 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 62.18% with an average market move of 0.85%.