FNM Watch

The government-controlled mortgage company Fannie Mae (FNM) dropped down to well below the 61.8% Fibonacci retracement line, a level that has provided firm support and challenging resistance for the past few weeks.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
FNM $0.93

At 12:44 p.m. Eastern

The 61.8% Fib level is 99¢. FNM is trading 6% below that level, at yesterday's closing price.

The Fibonacci trellis for FNM tracks retracement of the rise from the low of 28¢ on Nov. 22, 2008 to the swing high of $2.14 on Aug. 25, 2009.

Stock prices tend to pause at significant Fibonacci retracement levels. The next higher for FNM is 50%, or $1.21. The next lower is 78.6% at 68¢.

FNM has been in bull phase for three trading days on the parabolic sar, and four on Person's Proprietary Signal. The macd has been rising toward the zero line, although it remains in bear territory at this point.

For price-based reversal levels see my earlier analysis.

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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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Disclaimer

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.