So, Nokia Oyj (NOK) shares are taking a little breather on Tuesday morning. After a nice run-up on Monday where tech buyers were feeling good, the stock is down about 3.26% in the pre-market, trading around $8.60. It's not alone—the broader market is also looking a bit soft, with Nasdaq futures down 0.69% and S&P 500 futures off 0.54%.
Why the dip? Well, sometimes stocks just pull back after a big move. Nokia hit a 52-week high of $9.29 just yesterday, so a little profit-taking isn't exactly shocking. But there's also a bigger event on the horizon that investors are starting to think about: earnings.
All Eyes on April 23
Nokia is scheduled to report its first-quarter results on April 23. That's the next major catalyst. Analysts are currently looking for earnings per share of five cents and revenue of $5.38 billion. It's one of those classic setups where a stock runs up into an event, and then everyone holds their breath waiting for the numbers.
The Good News That's Already in the Books
It's not like the company has been sitting idle. On March 31, Nokia announced it secured a multi-year 5G RAN agreement with Virgin Media O2 in the U.K. This is part of the U.K.'s Mobile Transformation Plan and involves Nokia's AirScale portfolio and its AI-enabled platforms. That's a solid commercial win.
And speaking of AI, Nokia is also deepening its collaboration with Blaize Holdings Inc (BZAI), focusing on hybrid infrastructure across the Asia-Pacific region. So, the business development engine seems to be humming along.
What the Charts Are Saying
Here's where it gets interesting. Even with Tuesday's drop, the technical picture for Nokia still looks pretty healthy. Let's break it down.
At $8.60, the stock is still trading 4.8% above its 20-day simple moving average and a whopping 22.7% above its 100-day SMA. That tells you the intermediate-term uptrend is still very much intact. The moving average structure is what traders call "bullishly aligned"—the 20-day SMA is above the 50-day, and the 50-day is above the 200-day. That's the classic "golden cross" setup, which suggests there's a lot of trend-following support underneath the current price.
The Moving Average Convergence Divergence (MACD), a momentum indicator, is also still positive. The MACD line is at 0.2333, sitting above the signal line at 0.2124.
Put it all together, and you have a stock that's up nearly 90% over the last 12 months (from a low around $4.00 to yesterday's high near $9.29), sitting near its highs, and with its technical indicators still flashing green. The key levels to watch now? Traders might see resistance around $9.50 on the upside, and support near $8.00 on any further pullback.
So, Tuesday's pre-market dip looks more like a pause in a longer-term uptrend rather than a breakdown. The market is just catching its breath, maybe shifting some focus to the earnings report in a couple of weeks, while the underlying business and chart momentum seem to be pointing in the right direction.
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