Toll Brothers (TOL) slid from $52 to $29 from January to October and now I am seeing trades and people are returning to the charts and indicators. Patient investors may want to go to the open house. Let's check out the charts.
In this daily bar chart of TOL, below, we can see that prices have spent several days above the flattening 50-day moving average line. The 200-day moving average line looks like it is starting to bottom out.
The daily On-Balance-Volume (OBV) line does not follow prices lower until September and October. From late October the OBV line has moved higher.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has come back to move above the zero line for an outright go long signal.
In this weekly bar chart of TOL, below, we can see that TOL is down in an area of old support (former resistance) from early 2016.
The weekly OBV line shows a decline with the price action and a turn higher too.
The weekly MACD oscillator shows a bottoming pattern and cover shorts signals.
In this Point and Figure chart of TOL, below, we can see an upside price target of $42.
Bottom line strategy: Now that everyone or nearly everyone is bearish on housing we can see a recovery on the charts. Aggressive traders can go long TOL on strength above $35, risking a close below $30. $42 is our price target.