Toast, Inc. (TOST) , which provides point-of-sale systems for restaurants, was rated a new fundamental "buy" by a regional sell-side firm Wednesday with a $27 price target.
Let's check out the menus, oh I mean the charts.
In the daily bar chart of TOST, below, I can see a base pattern unfolding since March. The shares have moved sideways with buying interest showing up in the $16 area and below. Prices have moved above the 50-day and 200-day moving average lines.
The daily On-Balance-Volume (OBV) line made a low in June and has since improved, telling me that buyers of TOST are acting more aggressively than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and bullish.
In the weekly Japanese candlestick chart of TOST, below, we don't have three years of price data but what we have isn't bad. The shares are trading above the 40-week moving average line, which is bottoming.
The weekly OBV line has slowly improved from June. The MACD oscillator is very close to a buy signal.
In this daily Point and Figure chart of TOST, below, I see a price target in the $28 area being projected by the software.
In this weekly Point and Figure chart of TOST, below, the software yields a price target in the $33 area.
Bottom-line strategy: We don't have a lot of trading history with TOST shares but it looks positive and aggressive traders could probe the long side of TOST at current levels risking to $16. The $33 area is our price target for now.
