Market Overview

Technical Alert: Fannie And Freddie Bounce Off Intra-Day Lows

Share:
Technical Alert: Fannie And Freddie Bounce Off Intra-Day Lows

Federal National Mortgage Assctn Fnni Me (OTC: FNMA) and Federal Home Loan Mortgage Corp (OTC: FMCC) are making a huge bounce off of multi-week lows on Wednesday. Fannie Mae shares dipped as low as $3.41 on Wednesday morning, and Freddie Mac shares traded down to $3.27.

Fannie and Freddie’s big turnaround began roughly 20 minutes after the National Association of Realtors reported the highest level of U.S. home sales since the Financial Crisis.

Fannie jumped from a pre-election low of $1.61 to as high as $5.00 in early December on hopes that the Trump administration will eliminate the Treasury’s “net worth sweep” of Fannie and Freddie’s profits.

As it stands, Fannie and Freddie common shares are completely worthless unless shareholders get help from Trump or win ongoing court cases challenging the legality of the sweep.

Fannie and Freddie’s RSI peaked at around 90 during the early December buying frenzy, suggesting the two stocks were extremely overbought. In the past couple of weeks, their RSIs have dropped back into the 50-60 range.

The $3.25-3.50 area may be an important technical level for Fannie traders to watch in the future. Prior to the early December jump to $5.00, $3.25 was the stocks 52-week high and may now serve as technical support for the stock.

Posted-In: fannie mae freddie macTechnicals Intraday Update Movers Trading Ideas Best of Benzinga

 

Related Articles (FMCC + FNMA)

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial
Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

USDA Daily Cattle Slaughter; Live Cattle Futures Higher

Nokia Sues Apple In Europe, United States For Infringement Of Patents