FNM Watch: Volatility

Fannie Mae (FNM) added some volatility to its chart today, traversing 5.9% intraday low to high, a move that straddled the 50% Fibonacci retracement level.

The price pattern remains consistent with a symmetrical triangle.


If drawn in the orthodox manner, the apex will be at around $1.29.

If fudged to exclude an outlier on April 15, then the apex would be at $1.21. In either case, the triangle projects a 26¢ rise from the apex.

Personally, I tend to favor orthodoxy in drawing trendlines. Toss orthodoxy aside, and you're left with chaos, even anarchy, on the chart.

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