ALL breaks above 100-day moving average for the first time since August 13th
Allstate Corporation (ALL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ALL ended Wednesday at 95.91 gaining $1.07 (1.13%), strongly outperforming the S&P 500 (-0.46%). Today's close at 95.91 marks the highest recorded closing price since August 14th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ALL as at Sep 16, 2020):
Wednesday's trading range has been $2.62 (2.75%), that's above the last trading month's daily average range of $2.17. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALL.
The share managed to close above the 100-day moving average at 95.90 for the first time since August 13th. Unable to break through the key technical resistance level at 97.39 (R1), the market closed below it after spiking up to 97.56 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 11th, ALL actually gained 1.20% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the nearby swing low at 93.98 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Allstate. Out of 44 times, ALL closed higher 56.82% 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 seven trading days, showing a win rate of 56.82% with an average market move of -0.34%.