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Nokia Data And Technicals: Nokia In The Clouds

|Includes: MSFT, Nokia Corporation (NOK)

Nokia (NYSE:NOK) has been fighting a battle to stay alive, since its fall from grace in 2007. In October 2012 we saw a bounce in Nokia's (NOK) stock price from $1.69 to $4.70, with the stock dropping back to rest around $3.30. From the looks of it Nokia has a chance to see its prices jump again if it can get out of the clouds. We will first look at data that points to a high flying Nokia and then the technicals of the stock price.

Data:

Nokia has many factor that make it a great company to invest into. For starters Nokia has stopped their bleeding of cash; this was done by cutting spending luxuries (large headquarters), suspending its yearly dividend, and teaming up with Microsoft (NASDAQ:MSFT) that helps subsidies Noika's software and advertisement campaigns by almost $ 1 Billion a year.

Next we have Nokia's Asha and Lumia lines. Nokia is starting to turn up the heat in the low to mid range cell phone market that has companies like HTC,LG,Samsung, and others worried. Nokia Lumia 521 un-locked that sell for $120 has been reported sold out in Wal-Mart (NYSE:WMT) across the USA. The new Asha 501 looks like it will win big in emerging markets as well as potentially Europe as well. Lastly Nokia's Lumia 928 has so much hype and mystery around it thats people as on the edge of their chairs; their is no question (in my mind) that this device will be a sold out fast.

Nokia needs Microsoft as much as Microsoft needs Nokia. Nokia needs Microsoft in order to make its own niche into the market as the main WP cell phone maker. As Microsoft needs Nokia to make its own niche into the mobile OS market. If Nokia fails in gaining traction then Microsoft's hopes of expanding into the mobile market are lost, so Microsoft will spend big money to make sure Nokia grows. Nokia was smart to team up with Microsoft first inorder to have time to switch gears and make top of the line cellphones again.

Other notable things when looking at Nokia is its cash on hand, NSN, quality of their phones and the number of countries and cell phone provides that they do business with.

Technicals:

Nokia has started to move above its 50 and 200 day moving avarges which is a great sign on its own, but now it is the is Ichimoku Cloud.

Being in the Ichimoku Cloud is a hard place to be, cause this is were trends make it of break it. Last time Nokia was in the clouds it was on a desend on Feb 2013, but no the wind has changed and Nokia is back in the cloud. If Nokia can stay at it's current price $3.59 till May 28th it will of moved out of the clouds allowing it to trend upward more smoothly. On the other hand if the price falls back to $3.40 or lower by the same time Nokia will have a hard time of making a break out of the cloud till mid to late June when the Ichimoku Cloud trend turns.

If Nokia can keep up the momentum and jump above the clouds before the trend changes we can possibly see a jump in stock price of $4 by June and possibly $5.50 by July.

As always news can always mess up the best technical outlines, but I see no bad news coming Noika's way in the given time period.

-Nicholas Hillman

Disclosure: I am long NOK.