NOK dominated by bears dragging the market lower throughout the day
Nokia Corporation Sponsored American Depositary Shares (NOK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NOK ended Wednesday at 4.13 losing $0.03 (-0.72%), slightly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (NOK as at Sep 16, 2020):
Wednesday's trading range has been $0.07 (1.67%), that's below the last trading month's daily average range of $0.10. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NOK.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 4.07 (S1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the nearby swing high at 4.20 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 4.06 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Nokia. Out of 260 times, NOK closed higher 51.92% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.54% with an average market move of 0.76%.