Toll Brothers Stock Falls Below 100 EMA; Reaching $65?

TOL stock is presently witnessing a weak bearish momentum on the daily technical charts. On the daily chart, the share price is seeing strong shorting. Toll Brothers is currently near the value of $72.61, with a loss of 1.84% intraday.

The upside trend of Toll Brothers may halt near the value of $84.51. Meanwhile, the support of the share price is near $84.51. TOL price is currently roaming beneath the 50 and 100-day EMAs. If the price surges beyond the 50-day EMA, then a strong upside trend is imminent.

TOL price prediction indicates that the Toll Brothers stock is presently within the firm grasp of the bears. Despite making several attempts within the past few months, the buyers have not been successful in taking the price above its essential resistance level of $85.51 on the 1-day chart.

The technical indicators favor the bears projecting a pessimistic perspective for the buyers. RSI and stochastic RSI oscillator are moving near the overbought zone whereas the major EMA lines are acting as barrier points for Toll Brothers price.

The TOL stock price has shown poor performance in recent times. In the span of 3 months, the return was 7.03%; -7.51% return in 1 month; and it fell by 6.38% last week. However, the stock showed good performance in the long term – it gave 21.87% returns in 6 months, and 42.90% returns year to date.

Will TOL Stock Price Break Below 200 EMA level?

Toll Brothers stock (NYSE: TOL) is trading under the 50 and 100-day DMAs (daily moving averages), which are not upholding the price trend.

Nevertheless, if more selling volume adds up in stock, then more downward levels could be achieved in upcoming weeks. The price might smash new lows by making lower highs and lows. Hence, the Toll Brothers stock price is expected to move downwards giving bearish views over the daily time frame chart.

The current value of RSI is 34.30 points. The 14 SMA is above the median line at 45.72 points which indicates that the TOL stock is bearish.

The MACD line at -1.44 and the signal line at -0.6031 are above the zero line. A bearish crossover is observed in the MACD indicator which signals more bearishness for the Toll Brothers stock price.

Short-Time Horizon Analysis

TOL stock has shown sellers’ strength, and profit booking in the stock was noted on the short-term charts. Moreover, the price retested the 100-day EMA, which the seller tried to break for further weakness in the stock.

The RSI is near the oversold region at 28, a negative divergence was noted, indicating bearishness in the stock. The MACD also persisted to form red bars, a bearish crossover was noted signaling corrective moves.

Summary

TOL stock price technical oscillators also support the bearish trend. The MACD, RSI, and EMAs are emphasizing negative signs and imply that the downtrend may continue in the Toll Brothers stock price. TOL price action suggests that the investors and traders are bearish on the 1-D time frame. The price action reflects a bearish perspective at the moment.

Technical Levels

Support Levels: $68.49 and $62.71.
Resistance Levels: $77.74 and $84.51.

Disclaimer

The analysis delivered in this article is for informational and educational objectives only. Do not depend on this information as financial, investment, or trading recommendations. Investing and trading in stock involves risk. Please assess your situation and risk tolerance before making any investment decisions.