The past few months we saw a large run in the home builders. Since last week, we saw a massive decline in these stocks! Pro traders will always analyze a chart before they get in! Most amateur traders will have bought this $O probably around the top. Now the chart is coming into some good support.
If you take a look at the daily chart, the decline from the heights is almost 20%! First significant support that I see will be around $45.50 pierce of the 200 daily moving average. I won't get a massive position because it's a falling knife at this point, but if this support level will hold we can see some short covering. My first goal will be a bounce back to the 47 dollar level.
Kristof De Block