NOK closes lower for the 2nd day in a row
Nokia Corporation Sponsored American Depositary Shares (NOK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NOK ended the week -0.92% lower at 4.33 after edging lower $0.01 (-0.23%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.03 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 5th, NOK gained 4.22% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NOK as at Feb 14, 2020):
Friday's trading range has been $0.05 (1.16%), that's far below the last trading month's daily average range of $0.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NOK.
Prices are trading close to the key technical resistance level at 4.42 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Nokia. Out of 501 times, NOK closed lower 53.09% 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 52.69% with an average market move of -0.31%.