Source: ForexYard
Shares in Nokia turned significantly bullish in recent days following rumors that Chinese computer maker Lenovo was interested in purchasing the company. That being said, Lenovo has outright denied the rumors, leading most analysts to believe that Nokia’s current upward trend may be temporary.
As can be seen in the chart below, technical analysis supports the theory that Nokia could soon turn bearish. The Relative Strength Index on the 8-hour chart is approaching overbought territory, signaling that downward movement could occur in the near future. Furthermore, the Slow Stochastic on the same chart has formed a bearish cross. Nokia traders may want to open short positions ahead of possible downward movement.
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