Remember Nokia Corp. (NOK) ? This stock has not done much in the past few years but it now looks like it has hammered out a base pattern the past three years or so. Let's check out the charts and indicators.
In this daily bar chart of NOK, below, we can see a saucer-like consolidation or base pattern from May to now. Notice how the level of trading volume is heavier on the right side of the pattern from September to now? The daily On-Balance-Volume (OBV) line shows a significant improvement from August. NOK is above the rising 50-day moving average line and the rising 200-day line. The trend-following Moving Average Convergence Divergence (MACD) oscillator has turned up from above the zero line for a fresh outright go long signal. All good!
In this weekly bar chart of NOK, below, we can see a larger base pattern. Since the low in late 2016, NOK has been making higher lows. A higher high will be the big breakout with a weekly close above $6.50 or so. Prices are above the rising 40-week moving average line. The weekly OBV line has been rising and the weekly MACD is now above the zero line.
In this Point and Figure chart of NOK, below, we can see a long decline and a multi-year base pattern. An upside pride target of $16.25 is being projected.
Bottom line strategy: Do some fundamental research on NOK but consider going long and risking below $5.50. Add above $6.25 and above $6.50 looking for $16.25.
