Allstate Corp (NYSE: ALL), a financial services company, has been impressive on the charts. The stock rose by 6% from its opening price of $125.6 in the third week of March 2022. A significant increase in weekly volume supported this move.
Source: Scott Graham
That same week, the stock broke out of the $123.7 – $127.6 resistance level. A retest is yet to happen, though. But if a retest happens and this level holds it, that would confirm its new identity as a support and even make the level a good buying point for the stock.
Supports and Resistances
The sky is not yet the limit for ALL stock. It still has a resistance level around the $139 price, where it recorded its all-time high.
Only when the price breaks out of this level, reaching a new all-time high in the process, can we argue that the stock is headed for uncharted territories. Until then, the most recently breached resistance level remains a critical level.
Other pivotal levels on the ALL stock chart are the $106.2 – $109.7 and $85 – $89 support levels.
Should You Buy The Allstate Corp Stock?
The ALL stock has broken out of a resistance level and could retest the same level. The stock has also been on the rise since December 2021. Only about 5% of the price gap separates the stock’s current price from its all-time high. These are all positive signals.
As a result, we hold a bullish sentiment for the stock long term. In the short term, however, we recommend holding the stock until the price retests the $123.7 – $127.6 resistance level and makes it a support. Only then can we be sure that this breakout is not false.
However, the rise in volume that followed the stock’s 6% rise in the last week suggests that this breakout isn’t false. But really, it’s the stock market; you won’t know for sure until it happens.
And if the price does return to this resistance level, we advise that you place your stop loss south of the level at around $120.
