Momentum play with Freddie Mac (FRE) and Fannie Mae (FNM)

FRE & FNM have been heavily traded recently and this is a very good chance to do momentum investment. Both charts are very similar which showing “higher previous high, higher previous low” kind of up trend.

FRE has a $1.718 support line (61.8% Fibonacci Retracement)

FNM has a $1.472 support line (61.8% Fibonacci Retracement)

Both charts are currently bearish divergence and need to wait for MACD to cross the red signal line to enter the trade.

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