Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA) Headed Lower

Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA) Headed Lower

Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA) Headed Lower

Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 1.93.

The projected upper bound is: 1.92.

The projected lower bound is: 1.58.

The projected closing price is: 1.75.

Candlestick Alert

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.

During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 19 white candles and 30 black candles for a net of 11 black candles.

FANNIE MAE closed down -0.090 at 1.760. Volume was 2% below average (neutral) and Bollinger Bands were 52% narrower than normal.

Open High Low Close Volume___
1.835 1.860 1.760 1.760 4,325,179

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1.92 2.05 1.81
Volatility: 32 51 85
Volume: 1,845,970 2,753,046 3,996,043

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


FANNIE MAE is currently 2.8% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of FNMA.PK (mildly bearish). Our trend forecasting oscillators are currently bearish on FNMA.PK and have had this outlook for the last 0 periods. Our momentum oscillator is currently indicating that FNMA.PK is currently in an oversold condition.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 8.8889. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 20 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 25.48. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 49 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -226.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 17 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.

Federal National Mortgage Association (Fannie Mae) is a government-sponsored enterprise chartered by the Congress. The Company supports liquidity and stability in the secondary mortgage market where mortgage related assets are purchased and sold. It securitizes mortgage loans originated by lenders into Fannie Mae mortgage backed securities (Fannie Mae MBS) and purchasing mortgage loans and mortgage-related securities, primarily for securitization and sale later. Fannie Mae operates in three business segments: Single-Family Credit Guaranty, Multifamily and Capital Markets. Its Single-Family Credit Guaranty and Multifamily businesses work with its lender customers to purchase and securitize mortgage loans customers deliver to the Company into Fannie Mae MBS. It obtains funds to support business activities by issuing a range of debt securities in various capital markets. It conducts business in the United States residential mortgage market and the global securities market.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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