Q: I read your article on HOV on TradingMarkets.com. Could you elaborate a bit more on HOV. What do you think the next few months for Hovnanian Enterprise and why? Thanks!
A: We issued a downtrend on HOV on 6/18 @ $2.20 right after if fell below 50-day moving average support. HOV tried to cross above its 200-day moving average resistance on 5/6 but after it failed, sellers stated to move in. Looks like next support level is around the $1.70 (where it was around late March – early April). So keep an eye on it falling below there. If it can find a base and the market cooperates, then it could rally – but for now, its trying to find a support place.