Looking at the Nokia Corp. stock (NYSE: NOK) from the short-term perspective, it has been ranging between the 4.93 and 5.18 levels since around mid-May. Overall, the stock is well below the levels where it was about a decade ago. Once – a huge tech giant, now – a surviving company, Nokia is still trying to stay afloat. From the technical side, we will remain neutral and continue monitoring the price action. We will wait for a clear break through one of the sides of the above-mentioned range, before we get comfortable with a further short-term directional move.
A break through the upper side of the range, at 5.18, could spark hope in the eyes of the short-term speculators, as the move might clear the path towards slightly higher areas. We will then consider a possible move to the 5.33 hurdle, marked by the high of May 1st. Slightly above that hurdle sits the 200 EMA, which may stop the price acceleration, or even force NOK to retrace back down a bit. That said, if the stock stays above the 5.18 zone, some new buyers could see this as a good opportunity to take advantage of the lower price and push it to the upside again. If NOK moves above the 200 EMA, this may send the price to the 5.44 barrier, marked by the high of April 26th.
Our oscillators, the RSI and the MACD, are also taking a more flat, at the moment. The RSI is balancing around 50 and the MACD is moving around its zero mark. This suggest that there is still no clear directional momentum in the price action, which supports our flat stance for now.
Alternatively, a drop below the lower side of the range, at 4.93, could open the door for a further slide towards slightly lower support areas. This is when we will examine the possibility of seeing a move to the 4.84 zone, a break of which could clear the path for a further drop to the 4.72 level. That levels is the lowest point of May.
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