In trading on Tuesday, shares of Toll Brothers Inc. (NYSE:TOL) entered into overbought territory, changing hands as high as $21.44 per share. We define overbought territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be overbought if the RSI reading rises above 70. In the case of Toll Brothers Inc., the RSI reading has hit 71.3 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 60.1.
Investors could look at TOL's 71.3 reading as a sign that the recent heavy buying is overdue to take a breather, which could bring a pullback in the stock. The chart below shows the one year performance of TOL shares:
Looking at the chart above, TOL's low point in its 52 week range is $13.16 per share, with $22.42 as the 52 week high point — that compares with a last trade of $21.31.
TOL operates in the General Contractors & Builders sector, among companies like Standard Pacific Corp. (NYSE:SPF) which is up about 1.1% today and has a current RSI reading of 59.2. Below is a three month price history chart comparing the stock performance of TOL, versus SPF.
The ETF Channel Flexible Growth Investment Portfolio is designed to seek growth for investors —
anywhere and everywhere. The key to the program is our portfolio strategy allows us complete flexibility in terms of asset
allocation as there are no predetermined guidelines as to the level of stocks, bonds, cash, regions, countries, sectors,
commodities, or even asset classes in the portfolio! In short, this is a completely flexible portfolio designed to follow
the performance trail wherever it leads us.
This Article's Word Cloud:BrothersChannelDefinitionETFsFundIndexInvestmentJonesNYSEPacificRelativeStandardStrengthTollTuesdayWhataboveallowsanalysisassetchartclassescompletelyconsideredcouldcountriesdesignedgrowthhighotheroverboughtperformancepointportfoliopullbackreadingsharesharesshortstockstocksterritorythattradingunchangedusingweekwhatwhichwith
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.