From the high of $35.64 (U.S.) in February, 2007 (A), U.S. luxury home builder Toll Brothers Inc. declined to $15.49 in January, 2008 (B) and after a series of rallies and declines, it settled into a trading range between $15 and $23 (dashed lines). A move above $24-$25 would suggest the start of a new up-leg. Only a decline below $18-$19 would suggest additional base-building is required.
A rise above $24-$25 would signal Point & Figure targets of $29 and $34. The large area of accumulation (dashed lines) supports significantly higher targets.
Ron Meisels is a contributor to the www.NA-marketletter.com website. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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