Nokia Stock Faces Critical Test After 52% Price Drop

Nokia stock is under heavy pressure this week as shares dropped another 5.54 percent to hit 8.44 dollars. This decline brings the total loss to 52 percent since the stock reached its peak of 17.45 dollars in June. Sellers have pushed the price down to the 0.786 Fibonacci level at 8.50 dollars, which currently stands as the last major line of defense for the bulls.

The recent selloff is linked to a combination of factors including a recent ex dividend date and broader weakness across the tech and hardware sectors. Even though analysts at major banks maintain a positive outlook on the company, market sentiment remains cautious. Investors are reacting to fears over memory shortages and are pulling back from AI hardware stocks following recent earnings reports.

Technical indicators show that momentum is currently favoring the sellers. The Relative Strength Index sits at 27, which indicates that the stock is oversold, yet there is no sign of a recovery pattern forming yet. Because the volume remains high during this drop, traders are keeping a close watch on the 8.50 dollar level.

Looking ahead, market participants are waiting to see if Nokia can hold this support. If the stock fails to close above 8.50 dollars, it could potentially test the January lows near 6.06 dollars. A move back above 10.41 dollars would be required to break the current bearish trend.