The Finnish Telecom company underwent a staggering fall in the Stock Markets, from the level of 28 euros at the last quarter of 2007 to 7 euros by the beginning of March 2009. Since then, Nokia has kept a lateral movement between the support of 8.40 euros and two resistances, which are placed approximately on the level of 11 and 12 euros. This technical situation has led to a balance between bearish and bullish positions which involves an ideal scenario to make an aggressive trade for short-term investors. Currently, the horizontal situation remains unchanged. Therefore, the sooner the prices approach this resistances, long strategies should be closed. Volume continues being very low. Consequently, there are not technical reasons to open a long strategy in the short run.
If prices overtake the resistance of 12 euros, the situation would be completely different. In that case, bullish strengths would take over the battlefield and it would be the chance to initiate a long strategy.
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