FNM Watch

Fannie Mae (FNM) is showing bull phase on the macd for the first time since April 27. The phase switch was unconfirmed by any directional price action. The stock is trading narrowly a few cents below the 61.8% Fibonacci retracement line of 99¢.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
FNM $0.96

At 10:24 a.m. Eastern

The macd phase switch aligns on the bull side all of the major technical signals that I follow. The parabolic sar moved to bull phase on Friday, and Person's Proprietary Signal did the same a day earlier, on Thursday.

The macd bear phase saw FNM drop 30% from $1.26 to a low of 88¢ recorded May 21.

Reversal Levels

• $1.14, +18.8%
• $0.99, +3.1% (Fibonacci retracement 61.8%)
• $0.96 <== You are here.
• $0.88, -8.3%

The Fibonacci grid shows retracement of the rise from 28¢ on Nov. 22, 2008, to $2.14 on Aug. 25, 2009.

Click here for my earlier analysis of FNM.

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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.