Stock of the day: NOKIA

Stock of the day: NOKIA
The long-term outlook for Nokia has been given a fresh jolt of negativity, as the company announced a lowering of its full-year results guidance. The market didn't react well to this news, with Nokia shares dropping around 6-7% at the start of the European trading session. But how significant is this from a technical analysis perspective?
Well, it's worth noting that the move is rather significant. Firstly, we have to acknowledge the big symmetric triangle pattern that was seen on Nokia's chart throughout 2022. In April, the price managed to break to the downside from this pattern, giving a clear sell signal. From the end of April onwards, we saw a flat, sideways trend, which was propped up by a horizontal support level at 3.7 euros (orange).

The real blow came today, however, when the price opened with a bearish gap and continued its descent, breaking the horizontal support. This has triggered another sell signal, and as long as the price stays below the orange line, the sentiment for Nokia remains negative. This development marks a new chapter in Nokia's performance, one that may not bode well for its investors in the near term.
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