Swing Trading Plan
Holding Period
1-6 trading days
Expected figures are probability-weighted from our historical pattern database; Trade R:R is measured from the entry, target and stop levels.
Current Setup
Allot Ltd is forming a three white soldiers pattern at $8.76, just 5% below resistance at $9.23. The structure score of 13.75/15 indicates clean, consecutive bullish candles with solid progression. Volume is notably elevated at 3.33x average (1.13M shares vs. 340K daily average), providing strong confirmation of buying pressure. The breakout score of 13.0/13 and overall 73.15 score reflect a high-quality setup positioned 43% above the 52-week low, with RSI at 63.29 showing momentum without overbought extremes.
Stock Context
Allot Ltd, a cybersecurity and network intelligence provider, operates in the telecommunications equipment sector which faces sector headwinds (bearish regime, -0.69 score). Recent market action shows ALLT gained 16.49% over the past month, outperforming its 3-month flat performance (0.34%), suggesting renewed institutional interest. The company's lower beta of 0.76 indicates defensive characteristics relative to broader tech volatility. However, the telecommunications sector is under pressure; without recent earnings or major catalysts found in current reports, the rally appears technically driven rather than fundamentally catalyzed, which warrants monitoring for sustainability.
What to Expect
A successful three white soldiers breakout would see ALLT clear the $9.23 resistance with volume exceeding the current 1.13M shares, targeting the conservative measure of $9.22—approximately 5% upside from current price. Historical three white soldiers patterns show 61.4% win probability according to the system score. Invalidation occurs at the key support level of $7.41, a 15.4% downside risk. The pattern suggests a test of resistance within the next 5-10 trading sessions; volume confirmation above 800K shares on any breakout attempt would strengthen conviction, while a close below $9.23 without follow-through would negate the setup.
Risk Factors
The sector regime is bearish (-0.69 score) while ALLT forms a bullish pattern, creating conflicting signals typical of counter-trend rallies prone to reversal. MACD histogram is negative (-0.0038), showing weakening momentum despite the bullish candle formation—a divergence warning. Volatility at 3.65% ATR percentage is moderate but elevated relative to recent trading. No recent earnings date or major corporate catalyst was identified to justify the 16% monthly surge, raising questions about pattern sustainability. The stock's position 26.5% below its 52-week high suggests prior resistance remains, and institutional accumulation would need confirmation before considering this a breakout of significance.
How We Find and Score This Setup
We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.
Frequently Asked Questions
Is ALLT a good swing trade?
ALLT scored 73 out of 98 on our three white soldiers scan, with a 61% historical win probability over a 1-6 trading days hold. Good setup based on our systematic scoring.
What is the entry, target, and stop loss for this setup?
The setup's reference price is $8.76, with a conservative target of $9.22 and a stop loss at $7.92.
What would invalidate this three white soldiers setup?
A close below the stop loss at $7.92 would invalidate the setup and suggest the pattern has failed.
How is the win probability calculated?
Win probability is a calibrated estimate of how similar historical three white soldiers setups performed over the following 10 trading days, drawn from a database of 370,000+ historical pattern detections across 6,000+ NYSE and NASDAQ stocks.