What's Next As Nokia Sees Strong Earnings?

Nokia Oyj (NYSE: NOK) shares are trading higher Thursday after the company reported better-than-expected second-quarter sales results.

The stock posted sales of 5.31 billion euros, beating the estimate of 5.16 billion euros. Earnings per share were 9 euro cents, beating the estimate of 4 euro cents per share.

Nokia was up 4.04% at $6.05 at last check Thursday.

Nokia Daily Chart Analysis

• The stock has broken out of what technical traders call an ascending triangle pattern in early July and has held above the higher low trendline since.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock has been bullish.
• Each of these moving averages may hold as an area of support.
• The $5 level held as resistance before the breakout, since then it has been holding as support. The higher low trendline may continue to hold as support.
• The Relative Strength Index (RSI) has been holding above the middle line and sits at 68.  If the stock moves into the overbought area whilst seeing above-average volume, it may see a large bullish run.

What’s Next For Nokia?

Bullish traders are looking to see the stock continue to hold above the higher low trendline and push higher.

Bearish traders would like to see the stock fall below the higher low trendline and be able to hold below it. The stock could see a strong bearish move if this happens.

Photo: Courtesy of Nokia