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FNMA update chart

I teach channels last 3 to 5 touches, before breakout or breakdown. This can happen at any upper or lower trend line touch, depending on both sentiment (short term company actions) or phycology (longer term investor belief).

On a channel break out you add the channel to the top for target and breakdown you subtract the channel from bottom for target.

Since the channel was a down channel one should expect phycology to be negative resulting in eventual break down. If it was an up channel one should expect the opposite. Sideways channels are 50/50. But close attention should always be paid at trend line touch points.

After any target reached, expect a basing of price, before price moves to new true value. Basically a null from a technical traders stand point. No idea what to expect next, until a new pattern or trend is seen.


Study chart pattern first;
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:rectangle_continuation

It never got the 4th top trend line touch.