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Cramer intrigued by stock with picture perfect chart

Cramer: Nobody talks about this hot stock

(Click for video linked to a searchable transcript of this Mad Money segment)

Sometimes a stock chart is so attractive, analysts will say it should hang in a gallery. If that's the case, then the chart of Allstate probably belongs in the Metropolitan Museum of Art.

Technical analysis from Bob Lang is just that good!

And according to Jim Cramer, the fundamentals are rather pleasing, too.

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Looking at the fundamentals first, Cramer believes for $5.7 billion, at a 34 percent premium, provides a compelling reason for insurance stocks to rally broadly.

And the analysis from Lang would suggest that of all the stocks in the space,may be among the biggest beneficiaries.

First, turning attention to the daily chart, Lang says that since its February lows, Allstate has been making higher highs and higher lows; that's a classic bullish pattern. And Lang also says the advance has been accompanied by strong volume, another positive sign.

Also, Lang says, Allstate has been in overbought territory since early May. Although that's typically a cause for concern, in this case it's not. That's because Allstate has remained overbought for quite some time, and when a stock gets overbought and stays overbought, it's considered a positive sign from a chart perspective.

In addition, Lang says the Relative Strength Index, or RSI, has advanced to levels last seen in 2013, when the stock advanced from $40 to almost $50 in a matter of months. The fact that the RSI is, once again, at these lofty heights suggests that Allstate could again be preparing to rocket higher.

And, on top of all that, Lang says the Moving Average Convergence Divergence or MACD has made a bullish crossover.

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All told, Lang believes that Allstate may have one of the best charts out there, not just in the financials, but in this market, period.

"I agree, Allstate is absolutely worth owning," Cramer said, "There's every reason to believe that the entire sector will be revalued higher after the recent merger. And Allstate may be the way to play it. What else is there to say except, according to the fundamentals and the charts, you're in good hands with Allstate."

Call Cramer: 1-800-743-CNBC

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