FNM is about to break next resistance at $2.30, and then $2.70 and then to fill a huge gap occurred from 9/5/2008 ($7.04) to 9/8/2009 ($1.91):
What does that means? From a trader\'s point of view, after a period of time, the gap of a stock price created previously will be filled. The gap has created a vacuum area that there is a little trading volume in between, which means when the price goes up there is little resistance (sells from bag holders).
Although it is not guaranteed but there is a good possibility that FNM will go to $7.04 sooner than we thought with little resistance in the next few weeks if not months.