NOK rises to highest close since October 23, 2019
Nokia Corporation Sponsored American Depositary Shares (NOK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NOK finished the month 8.64% higher at 4.78 after surging $0.33 (7.42%) today on high volume, significantly outperforming the S&P 500 (0.77%) following today's earnings report. This is the biggest single-day gain in over a year. Today's close at 4.78 marks the highest recorded closing price since October 23, 2019. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NOK as at Jul 31, 2020):
NOK reported earnings of $0.07 per share before today's market open. With analysts having expected an EPS of $0.03, Nokia Corporation Sponsored American Depositary Shares topped market expectations by 133.3%. The company's last earnings report was released on April 30, 2020, when Nokia Corporation Sponsored American Depositary Shares reported earnings of $0.01 per share meeting market expectations.
Friday's trading range has been $0.31 (6.38%), that's far above the last trading month's daily average range of $0.13. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NOK.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Crossing above the upper Bollinger Band for the first time since July 6th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 4.35 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on July 6th, NOK actually lost -6.30% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Nokia. Out of 76 times, NOK closed lower 52.63% 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 61.84% with an average market move of -1.75%.