4NOVS_chart.pngNovaStar Financial Inc. (PINK:NOVS, NOVS message board) has been rallying in the last four days. While yesterday was not very intensive in terms of trading activity, the previous day NOVS scored a record high volume with nearly 635 thousand shares.

Even though recently there have been no specific news by the company that could have affected the market, there have been a lot of filed reports. Two days ago, NOVS filed an 8-K to specify the compensation plan for the members of the board of directors.

Furthermore, at the end of last week the latest quarterly report of the company was filed. The report showed that the company has managed to overcome its working capital deficit form previous quarters. The company also shows a positive bottom line. The financial report, however, is not audited.

5NOVS_logo.jpgSince the positive quarterly report was published, NOVS has been rising in terms of both volume and stock value. Only yesterday did some correction took place after NOVS shares dropped down 4% to $0.47.

NOVS closed exactly at the 50-MA, which is now acting as a support line. The days that follow will show whether the 50-MA will remain a support for the stock, or once again turn into resistance.