Stock Market for Beginners

Hovnanian Enterprises (HOV) builds residential homes in the United States. They have taken a big hit, as has the rest of the real estate market. Keep in mind, though, that when most people hate it, you should start thinking about the tremendous discount you could be getting. If you take a look at the chart, you can see a massive fallout in HOV since the beginning of June. Looks like we may have hit rock bottom.

Stock Investing Basics:

• Price has broken upwards through resistance.
• RSI has broken upwards through the 30 levels after being consistently oversold. In fact, RSI has formed a double bottom.
• MACD crossover indicates potential bullish change in trend.

I would definitely consider this stock a risky play. I would risk less of my capital than I would normally if I were to enter this trade. Furthermore, make sure you follow solid risk management techniques when entering the market.

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