economy
Insurance Stocks
Jay Woods of Freedom Capital Markets says insurance stocks have been trending sideways for years but charts show that is changing.
TL;DR
- Market volatility has returned, with significant intraday swings.
- Insurance stocks, historically stable and trending sideways, are now showing signs of change.
- Allstate is specifically highlighted as outperforming the sector and hitting new all-time highs.
- The iShares U.S. Insurance ETF (IAK) is trading near its upper channel limits, suggesting potential breakout.
- Allstate's stock shows a break above resistance on its one-year daily chart, with a bullish engulfing candle on the weekly chart.
- Momentum indicators like the RSI have broken their downtrend, confirming price action.
- Upside targets for Allstate are projected between $250 and $260 over the next six to nine months.