ALL breaks back above 20-day moving average
Allstate Corporation (ALL) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
ALL ended Monday at 99.07 gaining $1.26 (1.29%), outperforming the S&P 500 (0.38%).
Daily Candlestick Chart (ALL as at Jun 01, 2020):
Monday's trading range has been $1.62 (1.65%), that's far below the last trading month's daily average range of $3.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALL. Prices continued to consolidate within a tight trading range between 96.10 and 99.59 where it has been caught now for the last three trading days.
Allstate managed to close back above the 20-day moving average at 97.78. When this moving average was crossed above the last time on May 28th, ALL actually lost -0.46% on the following trading day. Unable to break through the key technical resistance level at 99.31 (R1), the stock closed below it after spiking up to 99.59 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the close-by swing low at 96.10 where further sell stops could get activated. Further buying might move prices higher should the market test May's nearby high at 104.29.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Allstate. Out of 677 times, ALL closed higher 54.80% 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 57.61% with an average market move of 0.58%.