Global mobile communications company Nokia Corp (NOK) hasn’t had the best start to the year as it currently again wobbles around around the -8.00% year to date. Of course the company’s fall from grace over the past decade or so has been well documented as competitors like Apple Inc (AAPL) and Samsung have pulled the proverbial rug underneath Nokia’s feet. Through this long-term lens the stock’s lower high in November 2007 (versus its all-time high in June 2000) in hindsight solidified the dooms-day scenario ahead for the stock as it continued to tumble right into July 2012 . From this point of view the stock remains firmly in grizzly town with much work needed before turning the long-term chart back up.
Zoom in a little bit close however, and a first hopeful sign is to be spotted on the stock’s chart looking back to 2010. Namely, the stock’s down-trend from the April 2010 highs finally managed to break in November 2012, which ultimately led the stock to rally into January 2013.
Despite the stock’s breakout past a first significant down trend this past November, the stock is still trading fairly sloppy. This, as a result leads me to draw levels of interest on the chart rather than take a stand right here right now with a directional trade. Despite the sloppy chart, Nokia Corp (NOK) has none the less displayed some relatively tight patterns over the past nine months or so, as noted on the chart below with the simple blue trend lines. The stock’s 4.50% + drop yesterday however raises a small red flag. In the event the stock can overcome yesterday’s weakness and throw itself back above Monday’s closing price near $3.85, I could get interested in the long-side of the stock for a move back to near the January highs of $4.70. Other than than, from a longer term point of view the stock has much more to prove before I will become interested in trading it with any consistency.