Despite the negativity in the equity markets, the Nokia Corp. (NYSE: NOK) continues to trade in the positive territory for the year. The chances that the stock will end the year in the red are now almost equal to nothing. Unlike other tech giants, this one continues to stay afloat, even during these turbulent times. Once, a major phone manufacturing company, after the dot-com bubble hit it started losing its dominance. Even though before 2007 the stock was on a steep rise again, still, it wasn’t able to fight back the market fears and the stock plummeted.
From the technical side, looking at the Nokia’s stock, which is trading on the New York Stock Exchange, the lowest it has been after the company got hit by the financial crisis, was around 1.63 dollars per share. This was in July 2012, but since then, the company managed to raise its value and watching the stock trading today, we can see that it continues to slowly climb higher. From the short-term perspective, since around mid-August this year, it has been forming higher lows. As long as NOK will continue trading above its short-term upside support line, drawn from the low of the 11th of October, we will continue aiming higher. The only thing that one should still keep an eye on is the long-term downside resistance line, running from the peak of the 23rd of May last year. If the share price gets closer to it, this is when we will turn neutral and play the waiting game, in order to see, how will the stock behave around that territory.
A push above the 5.66 level, might invite more investors to the table, as the path to the 5.74 area could be cleared. If the interest in the Nokia’s stock continues to rise, this may lead to a break of the 5.74 area. Such a move could send NOK towards the next potential resistance zone at 5.94, marked by the high of the 17th of December. Slightly above that lies another good potential resistance hurdle at 6.05, which was the December’s high.
Alternatively, a strong reversal with a drop below the aforementioned upside support line, could spook investors. In addition to that, if the share price moves below the 5.38 barrier, marked by the low of the 6th of December, this might force NOK to slide further down. The next potential area of support could be seen near the 5.24 obstacle, but a break of it could push the stock towards a re-test of the 5.12 level, marked by October’s low.
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