FRE Watch

Freddie Mac (FRE) has moved to bull phase on the parabolic sar and Person's Proprietary Signal. The macd, although still bearish, spent the latter half of last week rising toward the zero line.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
FRE $1.24

Friday's rise put the price within the May 24 trading range, the day on which the stock tumbled to $1.13, the lowest point on the three-month chart.

Freddie is one of the two mortgage repackagers spun off by the federal government back in the day. It's sister company is Fannie Mae (FNM). Both are among the walking wounded of the 2007/2008 financial crisis that saw the housing market collapse and the global economy fall into deep recession.

FRE was trading for nearly $68 a share three years ago. The price hit its low of 25¢ in September 2008.

More recently, FRE hit a high of $1.68 on April 13, dropped and traded sideways into May, and then fell sharply on an earnings report that wasn't of the happy-happy variety.

Reversal Levels

• $1.68, +35.5%
• $1.61, +29.8%
• $1.54, +24.2%
• $1.41, +13.7%
• $1.25, +0.8%
• $1.24 <== You are here.




• $1.13, -8.9%

A rise past $1.25 would push the price beyond the nearest resistance.

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Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.