NOK - 3 Potential Moves in the short term
Updated
Hey guys,
On multiple time frames,
NOK appears to have broken out (at the end of Friday). When I say "broken-out", I mean it has pushed through the falling channel it has been caught in on the hourly chart for a couple of days. Its hard to tell how it will react now that the weekend has passed, but I am hoping for some positive upward movement. NOK is involved in the 5G race, and has some potential to be a long term hold regardless of what occurs during this trade. It has just about had a full 100% retracement back to the price prior to the pump, AND it has confirmed uptrend candles (green candle) on the 4hr and 1D charts. In addition, the monthly chart (although red) closed outside of its downtrend resistance - signifying potential longer term uptrend. I apologize in advance for not having a strong enough account to post multiple pictures or graphs of the different time frames.
If you look at area #1, we can see the large green breakout candle and then what appears to be a flag/pennant forming (see descending red trend line and horizontal white support line. I was fortunate to purchase NOK when it was evident it was going to close, so I am already in profit, but am also entering a new position.
If we look at area #2, we can find evidence of the most clear resistance zone NOK faces should it try to make a move upward. See the two horizontal red resistance lines and refer to the left side of the chart to see that it has been tested prior to NOK's huge pump.
Lastly, if we look at area #3, we can see evidence of the most clear FIRM support (green horizontal lines) where there is good buying power.
Ok, now that we have a better understanding of how things are looking, there are about 3 likely scenarios (anything could happen TBH so have stops set).
The First scenario can be signified by the GREEN prediction lines
The Second scenario can be signified by the ORANGE prediction lines
The Third scenario can be signified by the RED prediction lines
Keep in mind that, on average, when a stock breaks out of any form of resistance or support, it tends to retest that same zone before continuing its moves up or down (see the prediction lines for a better understanding)
Patience is key, I can see myself setting a buy order $4.08 and a tight stop at about $4.04/$4.03 incase it takes the Orange Prediction line, OR set a buy order at $4.16 with a tight stop so I can buy at $4.08 if it fails.
This is what I am doing with my money, please make your own decisions. You are responsible for your money and what you do with it. Good luck guys.
On multiple time frames,
NOK appears to have broken out (at the end of Friday). When I say "broken-out", I mean it has pushed through the falling channel it has been caught in on the hourly chart for a couple of days. Its hard to tell how it will react now that the weekend has passed, but I am hoping for some positive upward movement. NOK is involved in the 5G race, and has some potential to be a long term hold regardless of what occurs during this trade. It has just about had a full 100% retracement back to the price prior to the pump, AND it has confirmed uptrend candles (green candle) on the 4hr and 1D charts. In addition, the monthly chart (although red) closed outside of its downtrend resistance - signifying potential longer term uptrend. I apologize in advance for not having a strong enough account to post multiple pictures or graphs of the different time frames.If you look at area #1, we can see the large green breakout candle and then what appears to be a flag/pennant forming (see descending red trend line and horizontal white support line. I was fortunate to purchase NOK when it was evident it was going to close, so I am already in profit, but am also entering a new position.
If we look at area #2, we can find evidence of the most clear resistance zone NOK faces should it try to make a move upward. See the two horizontal red resistance lines and refer to the left side of the chart to see that it has been tested prior to NOK's huge pump.
Lastly, if we look at area #3, we can see evidence of the most clear FIRM support (green horizontal lines) where there is good buying power.
Ok, now that we have a better understanding of how things are looking, there are about 3 likely scenarios (anything could happen TBH so have stops set).
The First scenario can be signified by the GREEN prediction lines
The Second scenario can be signified by the ORANGE prediction lines
The Third scenario can be signified by the RED prediction lines
Keep in mind that, on average, when a stock breaks out of any form of resistance or support, it tends to retest that same zone before continuing its moves up or down (see the prediction lines for a better understanding)
Patience is key, I can see myself setting a buy order $4.08 and a tight stop at about $4.04/$4.03 incase it takes the Orange Prediction line, OR set a buy order at $4.16 with a tight stop so I can buy at $4.08 if it fails.
This is what I am doing with my money, please make your own decisions. You are responsible for your money and what you do with it. Good luck guys.
Trade active
alright guys, as you can see when you update the chart, NOK didn't have enough buying pressure to get some big price gains. it looks like it is more likely to take the ORANGE route now, forming a reverse M pattern. How exciting!Setting the buy at about $4.09/$4.08 and then a stop loss at $4.03 - will monitor where TP will be based off of the bounce should it happen
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