Nokia Sneaks Toward New HighsNokia has gone nowhere for more than a decade, but now the Finnish networking stock may be finding new life.
The first pattern on today’s chart is the symmetrical triangle that formed in August and September. NOK broke out of this range earlier this month. It proceeded to bounce above the triangle last week, turning old resistance into new support.
Second, the stock is now above its 50-day simple moving average (SMA), 100-day SMA and 21-day exponential moving average (EMA). That wasn’t true just three weeks ago, which suggests the intermediate-term trend has recently grown bullish.
Third, NOK was targeted in January’s meme-stock frenzy. That briefly pushed its shares above $9.50. But if you exclude the unusual moment, NOK’s close yesterday was its highest in almost three years. It’s pushing some longer-term peaks from several years ago. There was also price gap on February 1, 2016. Filling it could bring NOK back to $7.
Overall, NOK may resemble Ford Motor a few months ago – another once-mighty name that had fallen from the limelight. However the fundamentals were improving with F as prices squeezed toward multiyear highs. Like F, NOK has showed signs of a turnaround as 5G orders flow in. Like F, it also struggled with chip shortages. Will it also climb a wall of worry as things return to normal?
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