Fannie Mae-No Politics (FNMA)

[HennHouse]

Charts just use buying and selling interest in a stock to predict future price movements. Had there been no news of potential release from conservatorship in the near term, then I would say that FNMA would dip down to the 30s before moving up again. However, the recent news has no longs selling and shorts too scared to hold a short position. Volume understandably died down from the jump a few days ago, but I just don't think people will find it worth it to sell right now for such small gains. FNMA will hold thi level for a little bit and then the few shorts left will start covering as they realize it's too risky to be short.