Fannie Mae: The Hard Bull Run Should Now Take A Breath (Technical Analysis)

Summary

• Fannie Mae has seen a significant rise from $0.35 to $7.5, but I believe this bull run needs correction, leading me to hold a "hold" position.
• FNMA's financials are stable, with net income around $4-4.2 billion expected next quarter, despite a slight decline in 2024.
• Technical indicators like MACD, RSI, and head and shoulders formation suggest a potential price drop, with critical support levels at $4.90 and $3.60.
• Risks include increased multifamily delinquency rates and a $146 billion capital shortfall, making a positive trend unlikely in the near term.

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Fannie Mae (OTCQB:FNMA) has risen from $0.35 to $7.5, making a 465% bull run in 2023 and 684% in 2024. In this article, I will analyze FNMA completely technically, trying to explain why this run needs correction, why I don't expect it to continue running at this pace

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.