Shares of homebuilder Hovnanian Enterprises, Inc. (NYSE:HOV) have crashed. Since June 1, shares have lost more than 40% of their value.
It started when the company reported second-quarter earnings. Investors weren’t happy with the results. There are also concerns about the impact of inflation on the homebuilding industry.
But is the sell-off over?
Shares have reached the $93 level. This is significant because it’s where the shares found a bottom in March.
Sometimes, levels that were support in the past can retain their importance for a long-time. This is what analysts mean when they suggest that markets have memories.
