Does This Provide a Reason to Sell First Trust FIDAC Mortgage Income Fund (FMY)? The Stock Has Formed Bearish Ascending Triangle Pattern

July 17, 2017 - By Marry Poplack

The stock of First Trust FIDAC Mortgage Income Fund (FMY) formed an ascending triangle with $13.41 target or 6.00 % below today’s $14.27 share price. The 5 months triangle pattern indicates high risk for the $59.91 million company. If the $13.41 price target is reached, the company will be worth $3.59M less.
The ascending triangle is a questionable performer despite its reputation as a reliable chart pattern. The ascending triangle has break even failure rate for up and down breakouts of 13% and 11%, respectively. The average rise and decline is 35% and 19%. The throwback or so called pullback rates are: 57% and 49%. The stocks meeting their targets is high for this type of breakout: 75% and 68% percent.

About 14,395 shares traded or 133.19% up from the average. First Trust FIDAC Mortgage Income Fund (NYSE:FMY) has declined 2.63% since July 17, 2016 and is downtrending. It has underperformed by 19.33% the S&P500.

Another recent and important First Trust FIDAC Mortgage Income Fund (NYSE:FMY) news was published by Marketwatch.com which published an article titled: “14.22” on October 18, 2010.

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