$NOKIA : Double Correction in Nokia after Blue Box Bounce
Nokia is a Finnish multinational telecommunications, consumer electronics and information technology company. Founded 1865, it is headquartered in Espoo, Finland. Investors can trade it under the ticker $NOKIA at Nasdaq Nordic OMX and at Euronext Paris. The company is a part of Euro Stoxx 50 (SX5E) index. Also, one can trade Nokia under the ticker $NOK in US in form of ADRs. Today, Nokia is employing more than 100’000 people, it is doing business in more than 130 countries and it is the world’s third-largest network equipment manufacturer.
In the initial article from October 2020, we have forecasted a rally for the coming years. Indeed, from October 2020 to January 2022 the price has advanced by 60% from 3.60 to 5.77. Then, a pullback provided an opportunity. In March 2022, we have explained that from 4.34–3.72 blue box area an acceleration higher should take place. As a matter of fact, we saw a reaction higher in 3 waves. Now, we provide un update calling for a double correction lower. Only then, a new rally should start.
Nokia Monthly Elliott Wave Analysis 09.25.2022
The monthly chart below shows the Nokia shares $NOKIA traded at Nasdaq Nordic OMX Exchange. From the July 2012 lows at 1.30, the stock price has developed a cycle higher in wave I towards 7.86 highs on April 2015. After the primary impulse higher, a double three correction lower in wave II has ended on March 2020 at 2.08.
From the March lows, a new cycle in wave III of (I) may have started to the new highs. Break of 7.86 highs would confirm that. As of right now, $NOKIA might be finishing the initial nest consisting of black waves ((1)-((2))) within the red III. Soon, acceleration higher within wave ((3)) of III should take place. The target for wave III is 8.66–12.72 area and even higher.
Nokia Daily Elliott Wave Analysis 09.25.2022
The daily chart below shows the $NOKIA shares price action in more detail. From the March 2020 lows at 2.08, the stock price has advanced in a black wave ((1)) towards January 2022 highs at 5.77. The pattern is a leading diagonal. From the January 2022 top, a decline in larger 7 swings is currently in progress. We saw 7 smaller swings of wave (W) reaching into 4.34–3.72 blue box area. There, a reaction higher in 3 swings of wave (X) has taken place. From the September 2022 high, a new cycle lower in blue wave (Y) might have started. Even though, the March 2022 low has not been broken yet, the RSI reading is already below that of the March. Now, while below 5.20 next blue box area can be reached.
Investors and traders can be looking to buy $NOKIA from 3.54–2.52 blue box area. There, an acceleration higher within black wave ((3)) of red wave III or a reaction in 3 waves as minimum should take place.