Allstate Corp (NYSE:ALL) has seen heavy buying over the last few weeks and appears to be creating a double bottom reversal over the last 4 months. Before creating this reversal, ALL sold off during the first half of the 2007.

This double bottom in ALL has not completely formed, and could end up forming another type of reversal or continuation pattern. I will be alert to a potential setup; if ALL breaks it's neckline it will definitely be an indication to me to go long.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.