AGNC in an IHS

AGNC is a mREIT (Mortgage Real Estate Investment Trust) that currently carries a 18.5% annual dividend. Thus, with AGNC you get paid a big dividend to wait for any price movement higher. Recently AGNC has been trading near its 2008 IPO price of $20 per share. This is after coming of a $37 all-time high in May 2013, which is a -45% decline.

AGNC appears to have put in an Inverse Head and Shoulders (IHS) bottom with a head at $20.5, neckline at $23.29 and target of $26 [i.e. 23.20 + (23.25-20.50)]. Last week AGNC has broken above the $23.29 neckline, setting up the potential move to the IHS target of $26.0. Also notice at the initial $20.5 price low in july there was positive divergence set-up o the daily RSI (14), MACD (12,26,9) and Full-STO. AGNC price is also now trading above the bullish aligned short-term moving average cluster of 13-day EMA ($23.29), 34-day EMA ($22.75) and 50-day SMA ($22.31).