Fannie Mae-No Politics (FNMA)

[~ NT ~]

** FNMA ** Technical Updates **

Lets take a look at the recent activity.

The open today had very weak volume (not shown here, refer to an intraday chart for that and compare with previous days). Although we saw a pop, it couldn't break the resistance.

In situations like this (especially with the weak volume at open), the algos (MMs) do their thing and try to bring it down - which is exactly what we saw today. (I sold the pop today AM and did not buy back stating this very reason earlier today).

Important levels of support to watch were the 20 DMA and the 50 DMA. The ticker is flirting with the 50 DMA now. I am not saying it broke the 50, or it did not break it, BECAUSE FNMA and FMCC are on either side of the 50 DMA by a point.

For tomorrow, the OPEN and the early trading activity is important IMO. If the 50 DMA holds - good sign. IF the 50 DMA breaks, it might fall more. There was strong support previously at the 100 DMA. There should be other support levels in between the 50 and the 100 DMAs also (I am not getting into the details here - we gotta look for round number psychological support levels in between the 50 and the 100 DMA in addition to other levels one can find from the chart.)

I will buy back ONLY after I see some support confirmation. The 'outside noise' being constant, that is.