NOKIA - Before and After

We showed the technical pattern that NOK was displaying last weekend on November 17th below with a price target around $4.00.

The chart below, just a week later shows the break of the symmetrical chart pattern to the upside with heavy volume.  

Although our price target has not been reached yet, the move higher has the stock quite overbought in the short term and a pause if not a pullback would be necessary if higher prices will be seen in the weeks ahead.

The overall market eclipsed our correction targets of the 200 dma and the 50% fibonacci retrace above.  Although this looks like an oversold bounce higher with heavy short covering on a holiday week, we are giving the low, the benefit of the doubt for now.  

Bottom Line:  Even though NOK has not reached our preliminary price target yet, the stock is on a parabolic move higher, that does not look sustainable in the short term.  So we may use a stop or take profits after a +30% gain in just a few short weeks.  The overall market has eclipsed our price targets to the downside, and has put in a nice oversold bounce last week during a shortened holiday week.  Thank you for reading.