Yes I know it is a stupid question but here comes some thoughts for you guys who follow Nokia. I know there are coming new WP8 models soon and many may say that it is behind the boost of the stock price. Perhaps it is true, what do I know but it should not be a surprise that companies tend to put out new products now and then.
So let’s skip the news, patents and other fundamental aspects and look at the map. Below a weekly Nokia (NYSE) chart
On a weekly 3y chart, NOK has not been this over sold nor has the rebound been this strong before.
The long term trend is clear; it has been down now for quite some time. The recent rebound though, is the sharpest rebound seen so far on a 3-year weekly chart. In fact, it is rather impressing! We could actually be looking at a longer term trend change. Obviously it is too early to say, should wait for the first pullback to see how many people are willing to get rid of profits (and bad losses..).
For the short term, we should expect some cool down since yesterday was a “big sell on strenght” day. Note also the trend line, price at resistance.
Sell on strenght and price at resistance as seen on this daily chart
Finally a daily chart, should expect gap close sooner than later
USD ~3 should provide support, first major important support level.
Btw, if you want a technical analysis on your favorite stock, drop a line and I’ll try to do my best.
