NovaStar Financial Inc. (PINK:NOVS) has been a delight for the short investors and a scourge for the long in the last two months. During this period NOVS stock went from $0.5 to $0.25 per share, losing half of its value.
The last three days were especially painful when NOVS experienced three consecutive sharp declines which were accompanied by heavy volume.
In fact, trading volume was the highest one ever scored in the stock’s trading history. A little over three million shares were traded as shown by the quotes on the OTC Market.
Only a small part of these shares were exchanged in short transaction. FINRA reports that the short volume for the day was comprised of 418 thousand shares, which is 13% of the total volume.
NOVS shares closed the session at $0.26, which is slightly above the intraday low at $0.25. After the last crash, NOVS dropped down below the support at $0.3 and scored a 52-week low.
The bearish performance of NOVS has been supported by the MACD indicator which shows no sign of reversing the trend at present. Thus, speculators may hope for a rebound only on the account of the new record low point of the stock, unless the company interferes with some solid press release.
