Hovnanian Enterprises Technical Analysis (NYSE:HOV)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the Hovnanian Enterprises stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the HOV stock chart which creates a trading signal.
You can view Simple Moving Average - SMA 20 day, 50 day & 100 day, Exponential Moving Average - EMA 20 day, 50 day & 100 day charts, and Bollinger Bands for Hovnanian Enterprises. The technical analysis form of Hovnanian Enterprises stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Hovnanian Enterprises Moving Average
Moving averages help predict the price direction of HOV stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Hovnanian Enterprises are mostly signals of long term trends and will help long term traders.
Hovnanian Enterprises Bollinger Bands
Bollinger bands comprise of a center line usually HOV SMA, and two HOV stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. Currently the stock price of $1.86 is in the lower range of Hovnanian Enterprises bollinger bands.
Hovnanian Enterprises Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Hovnanian Enterprises MACD line is below the signal line.
Hovnanian Enterprises Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. The relative strength index of HOV stock is 49.33.