Federal National Mortgage Association (OTCMKTS:FNMA) Stock Sees Bullish Action: Up 12% In a Week
In recent days, there has been a pretty strong selloff in the stocks markets but at the same time there have been some exceptions and one of those is the government backed mortgage lending company Federal National Mortgage Association (OTCMKTS:FNMA).
Market Stats
On Thursday, FNMA stock fell 0.50% at $1.02 with more than 6.05 million shares, compared to its average volume of 8.57 million shares. The stock has moved within a range of $0.9650 – 1.0600 after opening trading at $1.04.
Major Trigger
Over the course of the past week, the stock has attracted a steady stream of investors and managed to record gains of as much as 13%. In light of this situation, it might be useful to take a look at some of the factors that may have contributed towards the rally in the stock during the period.
One of the major triggers behind the rally was the fact that Fannie Mae, along with Freddie Mac, announced not too long ago that both the companies would be guaranteeing homes which are valued at around $1 million. This is only going to be application in certain specific parts of the United States.
Additionally, the former President Donald Trump also sent a letter addressed to Senator Rand Paul in which he noted that he should have removed the Director of the Federal Housing Agency Mel Watt at the start of his term as president. Federal Housing Agency oversees Fannie Mae and that may have created optimism among investors with regards to the possibility of getting out of Federal conservatorship.
Traders Corner
FNMA stock is trading above the 20-Day and 50-Day Moving averages of $0.96 and $0.89 respectively. The stock is trading in neutral zone with the RSI at 58. The stock is up 10% in the past month.
