Is It Time To Buy This Homebuilder Stock?

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.