Today’s chart is of Nokia Corporation (NYSE:NOK), which provides telecommunications infrastructure hardware, software, and services worldwide. The company offers smartphones and smart devices, and feature phones and related services and applications.


Click to enlarge

What I Am Looking At:

• Up over 145% since mid-July bottom.

• Still underperforming the broader market, down 16% year-to-date.

• Breaking out of a small pennant formation on the daily chart.

• Appears to be attempting a gap fill from April between $4.40 and $5.01.

• $4.82 is the 0% year-to-date level, could act as potential resistance.

• Since October 2011 short interest has risen nearly 250%.

• Nine percent of the float is sold short.

• Twenty out of 21 analysts covering NOK rate the shares a “hold” or worse,  possibility for future upgrades from this lopsided bunch.

• Peak call open interest for the January series resides at the 5-strike.

Trigger:  Aggressive traders can buy today’s breakout looking for a possible gap fill from last April.

This article by Tony Venosa, CMT, was originally published on Schaeffer's Investment Research.

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