By: Nick Denotto
I’ve been patiently waiting to add Toll Brothers (TOL), which is my favorite name in the housing sector and I think the moment has arrived. Toll stock got hammered by as much as 10% on Tuesday morning before sharply recovering. The stock has been in a steady decline losing some 38% so far this year.
But now, I think following the reaction to its earnings report on Tuesday, the set may be building a base and setting up a good risk/reward entry point.
You can see on the chart shares held a double at the $30 level and by bouncing back towards $33 have broken the long-term downtrend. What was interesting to see on Tuesday was that the stock initially dropped 10%, following the earnings report. But by midday, it actually turned positive before settling fractionally lower.
That is the type of … Continue Reading at StockNews.com