U.S. lifts $400 billion cap for Fannie, Freddie – CNBC

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U.S. lifts $400 billion cap for Fannie, Freddie – CNBC

FRE 

Immediate Support: $1.036
Immediate Resistance: $1.297

FNM

Immediate Support:  $0.917
Immediate Resistance:  $1.132

 Things to watch out:
  • 20D MA crosses up 50D MA – A bullish sign.
  • Whether FRE & FNM can stay above the 200D MA
  • Whether FRE & FNM can show a higher high & higher low uptrend pattern.
Continue ReadingU.S. lifts $400 billion cap for Fannie, Freddie – CNBC

Citigroup – Has Down Trend Started?

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Citigroup (C) said last Wednesday that it was on the verge of raising $17 billion (at a price of $3.15 per share) from investors toward repaying its federal aid. That discount was much larger than expected, leading the Treasury Department to postpone its plans to start selling the government’s 34% stake in Citigroup. Treasury had expected to reap a substantial profit on the shares, which it acquired at $3.25, but selling now would instead result in a loss of hundreds of millions of dollars.

Citigroup’s chart appears to be on the down trend. The stock price is currently below 20D, 50D and 200D MA. If Citigroup breaks below $3.16 (50% Fibonacci Retracement Level), the next support is $2.655. I am planning to invest in this speculative stock and waiting for the right price to enter.

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UNG – Going To Reverse The Trend!

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UNG is showing signs of reversing a down trend to up trend. Technically & fundamentally (economy perspective) this Natural Gas ETF is due for a long term up trend. I summarise my Technical Analysis and Fundamental Analysis as below:

Fundamental Analysis (Economic Perspective)

  • Economy has started to recover. The demand of natural gas will increase due to increasing economy activities like manufacturing, transportation likes car and truck, cold winter, etc.
  • Natural gas is another sort of popular green energy to be used widely in future where the world is determine to cut emissions of greenhouse gases.
  • Natural gas will be part of the energy substitution to petrol for all the car users.
  • Due to the low economy activities during the recession, natural gas is over supply and thus, there is no more natural gas storage space left. The major gas producers are now being forced to cut production; a move which may actually be beneficial to the industry as a whole as it will likely help boost prices, thus restoring margins for many producers.

Technical Analysis (Base on Chart Patterns)

  • A double bottom (or inverted head and shoulders) has been formed.
  • UNG broke out from the falling wedge resistance with increase in trading volume.

Things to look out for

  • The falling wedge resistance turns support, i.e. the stock price does not return to the falling wedge.
  • UNG breaks the $12.25 resistance (61.8% Fibonacci Retracement Level). This level is also probably the 200D MA if I extrapolate the 200D MA line.
  • The next lower low does not happen below $8.50 (historial low!)
  • 20D crosses over 50D MA.
Continue ReadingUNG – Going To Reverse The Trend!