Buzz & Banter
Almost a month ago to the day I looked at the chart of Fannie Mae (FNM: NYSE) and wrote about the important support area at 66 that was close to being violated. Since breaking down at 65 the stock has struggled to find any traction and today has given another new sell signal on its point & figure chart.
On a near-term basis the stock's weekly momentum readings have been negative for 13 weeks (these readings typically last about 6-8 weeks) and 60 is a well-established support area that FNM has held at two critical market junctures - Sept./Oct. of 2002 and March of this year. The longer-term two-point chart below helps illustrate the importance of this level for the stock.
Whether you're involved or not, this is something to keep on your radar. It's my opinion that the stock's ability to gather some bullish near-term traction from this support level is an important test for the near-term health of the financials overall.
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