Today, leading insurance company Allstate Corp (ALL), is declining after acquiring National General Holdings Co (NGHC) for $34.50 per share. Usually, when a large company buys another company the shares of the purchaser’s stock will often decline. Allstate Corp (ALL) stock is falling by $3.44 to $89.20 a share today. Shares of National General Holdings Co (NGHC) are trading higher by 64.5% to $33.59 a share.
Traders should note that Allstate Corp (ALL) is now trading below it’s important 50-day moving average. This puts the stock in a weak technical position on the charts. When stocks are in weak technical positions it is important to look for lower prices before jumping on board the stock. Traders should now watch the $84.00 area for major chart support. This level is an important retrace area and also a major gap fill from April 3rd, 2020. This support level should be very solid for a long side trade when tested.
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