Nokia Corp. (Nokia (NOK)) shares slipped nearly 3% on Friday as investors decided to cash in some chips after Thursday's big rally. The broader market was mostly flat — the Nasdaq barely budged, and the S&P 500 eked out a 0.17% gain — so this looks like plain old profit-taking, not a panic.
Thursday's 8.7% jump came after Nokia announced a partnership with NestAI to build military-grade 5G and defense systems. That's the kind of news that gets traders excited, and they pushed the stock up hard. Friday's pullback is just the natural hangover.
What the Charts Say
Zooming out, Nokia's long-term trend is still healthy. The stock trades about 11% above its 100-day moving average and a whopping 43% above its 200-day moving average. That's a solid foundation.
But the near-term picture is a bit messier. Shares are now about 5.9% below the 20-day moving average and 9.8% below the 50-day moving average. The 20-day line has crossed below the 50-day line, which is a classic short-term bearish signal. However, the 50-day remains above the 200-day, so the longer-term bullish trend is still intact. It's a mixed bag.
Momentum indicators are also cautious. The MACD is below its signal line, and the histogram is negative, suggesting that buying pressure has faded for now.
Traders are watching resistance near $13.04, around the 50-day exponential moving average. On the downside, initial support sits near $11.68, close to the 100-day exponential moving average.
Earnings and Analyst Views
Nokia is set to report second-quarter results on July 23. Wall Street expects earnings of 7 cents per share, up from 4 cents a year ago, with revenue projected at $5.59 billion versus $5.15 billion last year.
Analysts are broadly bullish. The stock carries a consensus Buy rating with an average price target of $14.67. Recent moves include:
- JPMorgan maintained Overweight and raised its price target to $21 on June 12.
- Argus Research upgraded the stock to Buy with a $15 target on April 27.
- Morgan Stanley initiated coverage with Overweight and an $8 target on February 9.
That's a wide range of targets, but the overall sentiment is positive.
Price Action
Nokia shares were down 2.57% at $12.50 at the time of publication on Friday.
