Stock Chart Analysis TOL
Toll Brothers, Inc. (Public, NYSE:TOL)
Have we seen the bottom in the home builders? I want to clarify, that a bottom in home builders is not synonymous with a bottom in the housing market. Stocks tend to lead the economy by a good margin, and while the real estate market may have a ways to go, a bottom in the home builders really just means that investors feel more comfortable that the worst is known, and things will start to get better.
Today marked an important shift in Toll Brothers as they closed above a large double bottom that has been forming for two years. Below is the weekly chart showing that pattern I am seeing. I see a stock that broke a downtrend and cleared a sideways consolidation base. While we must wait for a weekly close, we did get a daily close above the base which was a good sign. The important shift, in my opinion, is that TOL may be setting a higher weekly high and did in fact set a higher high on the daily. Uptrends are classified as higher highs and lows of which TOL has both. Other homebuilders have yet to confirm the strength, so at worst, we may be getting a preview that TOL will be a leader in this space. 
Good Trading,
Joey
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what do you think about BZH?
bzh is one of my favorites for short term trades in this space. I highlighted TOL because they are one of the few to have set a higher high.
Joey
Hi Downtrader,
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Have a great week ahead!
Vikram