Monday, February 21, 2011

This Product by Finnish is Finished.

This product is none other than Nokia. Nokia is from Finland and it is a Finnish's Company. However, I believe that this company by the Finnish is finished. The reason is simple, Nokia is not able to keep up with the new generation of the smart phone. Nokia has been producing shitty phone which were not able to compete with the likes of Apple and Samsung.

Click on the above image to enlarge

Based on the long term chart, Nokia has been tumbling from the $40 to the current level of $9.00. It explains why the CEO of Nokia has been sacked recently. And I think the board has made a good decision to change the CEO. Anyway, back to the technical analysis. I believe Nokia is currently trading between the range of $12 to $9. However, I believe that in the coming future, Nokia has a high probability to head below the $9 level after few months on consolidation under the current range.

Click on the above image to enlarge

Based on the short term technical chart analysis, Nokia has just been punished with a big downward gap coupled with high volume. It is a very bearish signal. After the recent downward gap, Nokia try to consolidate upward, however, the buying is not enough to push the stock higher to cover the upward gap as evident by the declining volume. The declining volume shows that the bull is very weak in their effort to push Nokia higher. I believe it is just a matter of weeks before, the bear come dominating the bull again and send Nokia to break the long term support of $8.00. Although, both the MACD and Stochastic look oversold, however I am still not buying it as I believe that this company has not been fully punished yet. More punishment will prevail for this under perform company.

Looking at the recent quarterly earning announcement, I am surprised to see that Nokia reported an earning per share of $0.30 which is a great improvement from the previous quarter of $0.14. It shows that Nokia has actually show some improvement. I do not know how Nokia reported such a solid earning and from where the earning actually came from, because everywhere I go, I did not longer see any Nokia phone around, it is now dominating by I-Phone.

Based on my analysis and research as per the above, I would recommend a short position on this stock. I am predicting that Nokia will continue its market share in the phone industry and resume its downward trend, perhaps, to the $5 level and below.

Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in The Market Oracle Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence. 

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...