NOK fails to close above 20-day moving average
Nokia Corporation Sponsored American Depositary Shares (NOK) Technical Analysis Report for Apr 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NOK ended the week 0.34% higher at 5.94 after gaining $0.07 (1.19%) today, outperforming the S&P 500 (0.66%).
Daily Candlestick Chart (NOK as at Apr 12, 2019):
Friday's trading range has been $0.08 (1.36%), that's slightly below the last trading month's daily average range of $0.08. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NOK. Prices continued to consolidate within a tight trading range between 5.84 and 5.96 where it has been caught now for the whole last trading week.
After spiking up to 5.96 during the day, the share found resistance at the 20-day moving average at 5.94. The last time this happened on March 11th, NOK actually gained 0.98% on the following trading day.
Nokia shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 5.96 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 5.88 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for Nokia. Out of 42 times, NOK closed lower 52.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.14% with an average market move of -1.09%.