TOL surges, gaining $1.90 (4.41%) within a single day
Toll Brothers Inc. (TOL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TOL finished Wednesday at 44.97 surging $1.90 (4.41%), strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on August 17th, TOL gained 1.52% on the following trading day. Closing above Tuesday's high at 44.51, Toll Brothers confirmed its breakout through the previous session high after trading up to $0.71 above it intraday.
Daily Candlestick Chart (TOL as at Sep 16, 2020):
Wednesday's trading range has been $1.88 (4.29%), that's slightly above the last trading month's daily average range of $1.84. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TOL.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 43.53.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test August's close-by high at 47.40.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Toll Brothers. Out of 120 times, TOL closed lower 65.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.33% with an average market move of -0.36%.