FNM Watch

The government-controlled mortgage company Fannie Mae (FNM) moved into bull phase on the macd, a signal that has shown various degrees of persistance when applied to this once major issue now sunk to the level of penny stock.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
FNM $0.94

At 2:54 p.m. Eastern

The signal has yet to be confirmed by price movement. FNM has been moving within a range for six trading days; today's intra-day decline retraced much of Wednesday's intra-day rise.

The most recent bear phase lasted 25 days. The preceding bull phase lasted half that time, and the bear phase before that ws even shorter.

FNM is trading a bit below the 61.8% Fibonacci retracement level; the Fib trellis measures moves in relation to the rise from 28¢ on Nov. 22, 2008 up to $2.14 on April 25, 2009.

The 61.8% level -- 99¢ -- has acted as resistance in recent days, and before that acted as support.

Reversal Levels

• $1.00, +6.4%
• $0.94 <== You are here.
• $0.92, -2.1%

Any play on this signal must be short-term, but that's always the case with Fannie these days and is certainly no revelation.

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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.