Death Cross Looms Over Allstate Investors

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 $119.72 at publication time.

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 Q2 2022 Q1 2022 Q4 2021 Q3 2021
EPS Estimate -1.30 2.92 2.77 1.67
EPS Actual -0.76 2.58 2.75 0.73
Revenue Estimate 11.11B 10.30B 10.00B 10.59B
Revenue Actual 11.51B 10.76B 10.30B 10.97B

Also consider this overview of Allstate analyst ratings:

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

Posted In: BZI-CROSSMarketsMoversTrading Ideas