Stock of the day: NOKIA
07 June 2023
On Wednesday, I am bringing you an update on NOKIA whom we previously analyzed on April 26. The price was trying to catch a break after a huge downswing that occurred in the middle of April. Despite the huge slide, I had my eyes set on a bullish correction, as that would have been a pretty common price action move. This is how I concluded the previous piece:
“My view on NOKIA is, of course, negative in the long-term but in the short term, we can observe rising chances of a bullish correction. It is possible that the correction starts today and from the technical point of view, we need the bullish engulfing on the daily chart for it to happen. We are still far from that, but it would be nice to keep that in the back of our heads.”
The correction did, indeed, happen and even though it has been over a month, it is still on! The correction is a flag-shaped one (green lines) and pretty narrow. A flag, of course, promotes a further slide in the price, so the main sentiment coming from the technical analysis is bearish. It will be denied if the price escapes the flag to the upside, but chances of that are currently rather limited.