Stock of the day: NOKIA
26 April 2023
Today, I would like to introduce the situation with Nokia, who entertained us with a proper, long-term sell signal last week. Before I go into details, let us remember how we concluded the technical situation here in our last February analysis:
“Currently, the approach here stays the same as with any other triangle. The price breaking the upper black line will give us a signal to buy, while breaking the blue horizontal support will signal us to go short.”
As you may expect, we did, indeed, get the bearish breakout to the downside. After breaking the 4.16 EUR support (yellow), the price quickly accelerated and reached the local low on 3.77 EUR. 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.