Toll Brothers Technical Analysis (NYSE:TOL)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the Toll Brothers stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the TOL stock chart which creates a trading signal.
See Toll Brothers bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis essentially tries to study the supply and demand for a particular security and determine the stock trends for that security. Chartists use stock price movements for this form of Toll Brothers stock analysis.
Toll Brothers Moving Average
Moving averages show the TOL stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The 20 day moving average of $46.52 is above the last closing price of $46.24 and the 50 day moving average of $48.35 is above the last closing price of $46.24. The 10 and 20 day periods can predict short term moving average trends.
Toll Brothers Bollinger Bands
Bollinger bands comprise of a center line usually TOL SMA, and two TOL stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. The stock price is trading between the average and the lower band in the context of Toll Brothers bollinger bands.
Toll Brothers Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The Toll Brothers MACD indicator is below 0 indicating a bearish trend.
Toll Brothers Relative Strength Index
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . 45.22 is the RSI value of TOL stock.