lowtrade

[lowtrade]

It's been 3 weeks and about time to watch for the decision at FNMA. Basing channel was 2.70 / 3.00.
http://stockcharts.com/h-sc/ui?s=FNMA&p=D&yr=0&mn=6&dy=0&id=p68990531951

The more you see something happen, the more you can rely on it!

Usually what happens after an island reversal has it's come back is it stalls after the pop for a week or three. While everyone re-evaluates what happened with the company to get the new vote of confidence.

This stall or basing point can go either way. So it's a time of caution, weather to hold for more or dump with a smaller loss. due to the new pop. One should not feel comfort with island reversals until it breaks out from the stall after any pop and gap fill. Because I've seen just as many dive back down as continue to run.

FNMA

Ps; don't worry to much about the quick retrace to fill that emotion gap. IMO it will settle down and stall some where between high and gap fill. If it moves like most island reversals do. Watch 2.90 / 3.10 for a channel.