Death Cross Looms Over Allstate Investors

If history is any guide, there may be trouble ahead for shares of Allstate ALL. A so-called "death cross" has formed on its chart and, not surprisingly, this could be bearish for the stock.

What To Know: Many traders use moving average crossover systems to make their decisions.

When a shorter-term average price crosses above a longer-term average price, it could mean the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is lower.

Why It's Important: The 50-day and the 200-day simple moving averages are commonly used.

The death cross occurs when the 50-day moves below the 200-day. This could mean the long-term trend is changing.

That just happened with Allstate, which is trading around $107.36 at publication time.

signals

Remember: Seasoned investors don't blindly trade Death Crosses.

Instead, they use it as a signal to start looking for short positions based on other factors, like price levels and company fundamentals & events.

For seasoned investors, this is just a sign that it might be time to start considering possible short positions.

With that in mind, take a look at Allstate's past and upcoming earnings expectations:

Quarter Q4 2022 Q3 2022 Q2 2022 Q1 2022
EPS Estimate -1.36 -1.52 -1.30 2.92
EPS Actual -1.36 -1.56 -0.76 2.58
Revenue Estimate 11.43B 12.03B 11.11B 10.30B
Revenue Actual 11.48B 12.04B 11.51B 10.76B

Also consider this overview of Allstate analyst ratings:

ratings

Do you use the Death Cross signal in your trading or investing? Share this article with a friend if you found it helpful!

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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