RE: Watchlist - Traders method
My pops thinks FNMA is a Buy and poised for another major move. I think it’s possible it could make a Stage 2 continuation move but I’m not 100% convinced so I thought I would throw it out to the group…
Pros:
Mortgage Finance in strong Stage 2
2x avg volume – last week’s volume was 104M shares compared to 50M 4-week average
MA- Rising and Above 30-week Avg
Relative Performance – Rising and Above Zero Line
No Overhead Resistance
Stochastics moving upwards
Cons:
Financials Sector – has not broken MA but also did not clear previous highs – possible Stage 3A
P&F Chart is Bearish – Price Target = $0
Highly volatile
It looks as though it broke thru its upper resistance last week but then closed just under it. I’m thinking if the volume continues to be good and it can clear $1.55-$1.60, I might buy in for a SMALL position.
Curious to hear what others think…
I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times, I've been trusted to take the game winning shot and missed. I've failed over and over again in my life. And that is why I succeed. - Michael Jordan