Nokia (NOK) is one of the stocks we currently own. I mentioned in a prior post the release of their new smartphone the Lumia 920 just this past week, which has received strong reviews. The chart is showing a commonly known "symmetrical chart pattern".
From the above chart. The symmetrical chart pattern is one that gets narrow as time goes on. The volatility of the stock decreases. Another characteristic is that volume also decreases as the triangle extends, which it has. The potential breakout (higher or lower) of the triangle should include high volume. The target price on a break out higher would be around the $4.00 area, or the width of the pattern when it started.
Bottom Line: We hold NOK as a turnaround story, based on the release of their new Lumia 920 smartphone with Windows 8 as the operating system. Buying the stock from a technical pattern when it breaks out of the triangle would be a play for traders looking for a technical edge to the upside with an intermediate $4.00 price target. Thank you for reading.
