Nokia Oyj : Gap still open
Published on 03/23/2012
at 07:10 pm IST
| Entry price | Target | Stop-loss | Potential |
|---|
|
€4 |
€0 |
€4.15 |
+100% |
|---|
Nokia, the Finnish mobile phone manufacturer is out of favor. The extensive rehabilitation program engaged by Stephen Elop since its appointment as CEO in 2010, continues. The company announced nearly 1,000 jobs removal on its factory in Salo, latest mobile phones assembly center in Western Europe. This staff reduction seems to be neither the first nor the last.
The company goes through a deep crisis following its market decline against Samsung and Apple. The alliance with Microsoft allowed the commercialization of phones with Windows Phone system. This risky gamble did not collect a huge success but the brand still relies on its tablets launching to get it out of the red zone. Fiscal year 2011 recorded a net loss of 1.16 billion euro with declining sales of 9%.
Technically the stock record a loss of nearly 50% year to date. The current level at EUR 3.95 does not seem to satisfy the bearish appetite. The moving averages' orientation is bearish. The security has been evolving since the beginning of the year in a trading range between EUR 3.75 and EUR 4.33. The downward trend could lead the share to fill the gap at EUR 3.8 before coming back on the 3.75 EUR short-term support. In this perspective a selling strategy could be initiated with a target of EUR 3.75. A stop-loss will be fixed at EUR 4.15.
© MarketScreener.com -
2012
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