HOV was covered in the recent $RUT Overview Video as a possible short candidate on a break below this rising channel (daily chart below). I have a decent horizontal support area not too far below current levels around the 5.85 level which is likely to come into play. Therefore, the way I plan to trade HOV would be to short 1/2 position if prices break below the channel around current levels while adding the 2nd half if and when prices break below S1.
One possible scenario that I could see playing out would be for prices to find support here at the bottom of the channel and moving higher towards the 8.15 area, which is the horizontal resistance level shown on the weekly chart. If that were to play out and prices broke below the channel shortly afterwards, I would then change S1 to T1 (first target) while changing the current T1 & T2 to T2 & T3, respectively. HOV only remains a short setup for now with an entry to be triggered on a break below the channel.
