NOK closes within prior day's range
Nokia Corporation Sponsored American Depositary Shares (NOK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NOK ended the month 11.39% higher at 4.40 after gaining $0.05 (1.15%) today on low volume, slightly underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NOK as at Jun 30, 2020):
Tuesday's trading range has been $0.11 (2.56%), that's slightly below the last trading month's daily average range of $0.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for NOK. Prices continued to consolidate within a tight trading range between 4.30 and 4.44 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Tweezer Top and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Tweezer Top showed up on June 10th, NOK actually lost -7.64% on the following trading day.
Prices are trading close to the key technical resistance level at 4.42 (R1). After having been unable to move lower than 4.31 in the previous session, the market found buyers again around the same price level today at 4.30.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 4.45 where further buy stops could get triggered. With prices trading close to this year's high at 4.54, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for Nokia. Out of 54 times, NOK closed lower 57.41% 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 57.41% with an average market move of -0.55%.