Source: ForexYard
Over the last week, shares in Nokia have jumped from $2.13 to a high of $2.64 after the company announced that it would only be using Microsoft software in its smartphones from now on. That being said, traders should be aware that technical indicators are signaling that the company’s stocks may have entered overbought territory, and could see a downward correction in the near future. As can be seen in the chart below, the Relative Strength Index is approaching the overbought zone, while the Slow Stochastic has formed a bearish cross. This may be a good time for traders to open short positions ahead of a possible downward correction.
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