Nokia fails to break through the thick kumo resistance despite rallying from a low of $7.80
On top of the resistance, the chart now shows another negative outlook for Nokia with the gap down yesterday.
The gap down will mean immediate resistance is at around $8.80 to $9.00
Most likely, we will also see Nokia (NOK) heading towards its March lows.
The stock did not manage to hold the line and continue its way down.
Reviewing the Ichimoku chart for Nokia now, reminds me of a simple rule :
1. Have the trend turns?
2. What are the confirmation signs?
As we can see, the Kijun sen (trendline) on the chart have hold Nokia down throughout since it breakdown.
It continues to be down to $8.50 from $12 since I last reported. If I have a position and did not get out, I would have been down another $3+ per share.
A simple reminder : It is just easier to trade with the trend backing you.
For a very short term play, Nokia seems to be bouncing off its low at $12.00
For now, it is unlikely that it will move up too much given its recent announcement on earnings and margins cut.
Let’s see if it can reach $12.28