FRE & FNM – Broke the critical support level!

FRE & FNM broke the critical support level (61.8% Fibonacci Retracement level) after a KBW analyst downgraded the two to the firm’s lowest rating, cut price targets on both stocks to zero from $1. KBW said their common and preferred shares would be “worthless” given the nearly $100 billion they will continue to owe the government, even if recapitalized. FRE broke the critical support level of $1.705 and FNM broke $1.483 support level. Both stocks are below the 20D & 50D MA, all other technical indicators show bearish convergence.

I sold all my stocks to take profit after sighting a bearish convergence signal. I plan to buy back at a lower price when the down trend ends. I think the US government will continue to run the companies, and the companies will not go bankrupt. However, the value of their common and preferred equity will probably be re-capitalized. Thus, buying at a very low price limits the downside risk.

GoldenAgri – Short Term Momentum Play!

I predict a short term rally after seeing a hammer candle (a trend reversal from short term down trend) yesterday. Today GoldenAgri closed at $0.45 with 86.3 Million shares traded (#3 Most Active Stock). The 10D MA just crossed 20D MA and the stock price is trying to cross above the 10D MA line. All other indicators showed some bullish strength. Strong support at $0.43.

Jaya Holding – Long White Candle for the third time!

Jaya Holding closed with a long white candle at $0.485 with 21.6 Million shares traded today. Jaya Holding is also top 30 gainers (%) and top 30 most active stocks today. This big one day gain had happened for the 3rd time within three months. The bull failed in the past two attempts to drive the stock price higher. Can the bull win this round and break the $0.51 resistance? Or, the bear will win this round again to form a triple top? Technical Indicators show bullish strength but past two incidents told me that the bull is unable to sustain its run due to lack of volume.
Mr. Bull, do you need a Red Bull so that you can berJaya (successful in Malay)?