Toll Brothers: #PowerStocks Series Pick Of The Week (March 2024)

There's no movement. All is quiet and peaceful. The sky is still dark as I push my bicycle down. Yes, I occasionally wake up in the wee hours, especially for cycling with my buddies. Is there an activity that you keenly look forward to? Another favorite activity of mine is trading and sharing about the stock market. Before sharing this week's #PowerStocks pick, let's review last week's stock pick: Sherwin-Williams (SHW).

Review Of Last Week's Pick Of The Week

Sherwin-Williams' share price began pulling back upon hitting its immediate resistance zone ~$347. This is healthy, given that its share price had soared 12% prior. You may want to set a price alert around $325, as that's its immediate support zone. I'll set a price alert there and wait for a bounce for a swing trade! While we wait for this swing trading opportunity, shall we explore this week's swing trading opportunity: Toll Brothers (TOL)?

Why Is Swing Trading Toll Brothers (TOL) Worth It?

Source: investors.tollbrothers.com

Toll Brothers (TOL) is this week’s #PowerStocks pick. It designs, builds, sells homes, and provides financing. Its share performance has been outstanding lately, beating the S&P 500 since late Feb 24. Moreover, its share price has proven explosive, exploding as much as 24.9% in mere weeks. Furthermore, a pullback is here, presenting a fantastic swing trading opportunity soon. Read on to find out the details that I'll be watching for. P.S.: What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short period of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Toll Brothers (TOL)

The share performance of Toll Brothers was sluggish at the end of 2023 and the beginning of 2024. If you had bought its shares in late 2023 and held them till mid-Feb 24, you'd be disappointed. Towards the end of Feb 24, things changed. Its share price began trending higher. In addition, its performance overtook the S&P 500's. Knowing that the share price of Toll Brothers is on a strong uptrend and that its performance is better than the S&P 500's, you'll want to be looking for buying opportunities.

How Explosive Is Toll Brothers (TOL)?

But is buying the shares of Toll Brothers for a swing trade worth it? After all, there are 6,000 other stocks that you could've chosen. So, let's find out if the share price of Toll Brothers has been consistently explosive for your consideration. In the past 10 months, its shares have exploded 17 times by 5% or more! The largest upmove stands at 24.9%. Such explosive moves are remarkable for Toll Brothers who enjoys a $12b market capitalization. Here's another plus point for Toll Brothers: its large market capitalization makes it a safer stock for a swing trade. You must be asking, "Is it time to buy its shares?" Let's find out in the next section.

Key Price Levels

After a spectacular rise of 23.2%, it's normal for its share price to pull back — and that's exactly what it is doing. Can you spot a key price level ~$113? Thus, the region around $113 is likely to be a support zone where its share price could bounce off and head higher. Therefore, to increase your chances of success, you'll want to wait for its share price to drop to ~$113 and bounce before considering buying its shares for a swing trade. I'm sure you want to profit from Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

Claim Your Free (Limited Time) Stock Course Right Now:

The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!