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First it went burst with its evil twin, Fannie May and have to be rescued by the US government to the tune of billions. And one thing after another, its CFO David Kellermann committed suicide early this year. Its share price went from $71.92 to $0.25.
And yet I like it ! In both its daily and weekly chart, a very clear bullish divergence is found at the MACD in relation to the prices.And it has now closed above my favorite long term moving averages. I think it should stage a strong rebound soon. The only item that bothers me is the falling ADX which is telling us a trend has not developed yet. But if you are one of those "buy low" kind of players (I am not) , then you may want to try your lucks by buying near 1.52 and 1.42 which are its weekly and monthly pivot supports.
Even though the US government has no obligation to guarantee both Freddie Mac and Fannie May but went in anyway is because both the Russian and the Chinese government are big stalkholders, but somehow uncle Sam felt it was politically correct to bail out these two in order to avoid possible "losing their goodwills". So in the immediate term, I do not think uncle Sam will allow these two to collapse again any sooner.
If you are one of those who is willing to take a bit more risk in life, maybe you should try put some money in this.
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