Toll Brothers at Top of Upside Price Channel

Anticipating a recovery in the housing market investors have bid up the price of Toll Brothers (TOL), a luxury home builder. The price chart shows that TOL is at the upper boundary of the upside price channel that commenced after TOL completed a head and shoulders top.

If the upside continues, TOL will face resistance between $35 and $39. This stock is best purchased on dips in price.

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December 7, 2006.