My team of traders say you need to pay attention to the Allstate Corporation (NYSE: ALL).
As you can see on the chart above, the insurance juggernaut saw shares pop last week after posting better-than-expected second quarter earnings.
This helped the stock breakout out of a bearish downward trendline of resistance.
The pattern the stock was in is known as a “descending triangle.”
The breakout to the upside signals that shares should continue running higher.
My team says a common price target is found by taking the height of the price pattern.
In this case it was $15 from the start of the red line, to the green line on the chart.
That’s a price target of $120 a share, and would signal a new all-time high for the stock.
This would be an upside potential of at least 20% from here, with the catalyst of new highs likely pushing this return beyond 30% by the end of the year.
© Chart courtesy of Today’s Profits. All rights reserved.
