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Brief Nokia analysis - Negative Season?

Written by M. Hussein on July 29, 2008 – 1:10 pm

nokkiang Brief Nokia analysis - Negative Season?Few days ago I had posted a trade gain of 11% at Nokia, playing at the same time with the results of that company (which is dangerous but the results normally follow the trend, that’s why I love technical analysis). At that post, Matthew from NSeriesus asked why we talk about stocks in a phone related website. The reason is simple: As I trade in the stock market I could help Meraj improve other areas from this niche (mobile phones) so that we could diversify our themes and have also a different audience, such as people who love Technology stocks!

Back to the Nokia Analysis…We have been observing consecutive little Gaps on the daily price, which lead us to conclude that there is indecision, also, the volume on this uptrend is a diminishing one, showing that the bulls might NOT be strong. In the same view the main and primary trend is lower, the longer term moving averages are lower, and the stock is resisting at 27,90 (23,60% of fibonacci). So then, my advice is to wait until it proves the innocence, which means, wait until you see if there are a reaction in the 50 day Moving Average, which again means, there might be a possibility of retraction through 26,38 - If you are able to, you can simply short it! Also add a stop loss over 28,38 in that trade.

If you are a passive trader, wait for that reaction at 26,38…be passive, because the short term trend still up and we don’t want to discover tops or bottoms; we want to follow the trend. That’s it!


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Posted in Nokia, Reviews | Comments

Up! up…uuuup!

Written by M. Hussein on May 6, 2008 – 6:34 pm

No. I am not crazy, but my thoughts today finish with the conclusion that markets will probably continue going higher.

In the last post I wrote about Nokia, I referred the Doji Patterns:

But, in the other hand, Nokia also followed Motorola’s way touching new yearly lows at 28,28, but again doing the Doji Pattern (a pattern of recovering) as it done two days ago.
The THING right now that we need to watch is what Nokia will do, will their shares follow Motorola? Or, will they fight against the storm?
So they really fought against that storm, as Motorola followed Nokia’s positive evolution. anyway, Truth be told, the reason Motorola’s shares were high is mainly related to Nasdaq “strongness” we saw these last days. In my opinion, the markets will remain higher, as the indicators I regularly use to see how market tends to evolute are all positive.
But, make all your investments/trades with caution, because many well known Fundamental Investors, as the billionaire Warren Buffet are saying that the crisis tend to remain. The THING we need to know is that if they were saying it just to buy stocks with lower prices (as they have influence on the markets) or if they are saying their real perspective. Let me remind you that Warren Buffet has the best fundamental analysis teams on the world.
Another thing I want to focus in today’s post is another pattern that many stocks, as Motorola are doing right now, that is the MACD divergence. I would really recommend you to search on Google about that.
This is a positive divergence, because MACD is going higher and the stocks were doing more and more low lowers and low highs. The green lines are representing that divergence on Motorola’s chart.
motorola_shares Up! up...uuuup!
By the way, we had some patterns on Nokia showing sometimes that the stock could have reach the top, but as I said probably that was a top to last for few days because the market is having a strong bull basis.
nokia_shares Up! up...uuuup!

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Posted in Motorola, Nokia, Reviews, exclusive | Comments

Analysis to the Motorola SpinOff

Written by sampdoria on March 28, 2008 – 11:17 pm

Some days ago Motorola announced a SpinOff, in this case a separation of Motorola in two companies.

It is known that Motorola was preparing an operation like this some 2 months ago, but just now we had the official announcement. A SpinOff is always taken well by the investors, mainly because it will create 2 companies focused in their products, that normally aren’t competitors, which means that we can have a Motorola more focused in the mobile markets and more directed against its rivals, such as Nokia and Samsung.

But, that was what happened in 26th March. We saw a huge gap up (an opening superior than the last close), on which the stock plunged from 9,71$ to 10,30$.  But, in the afternoon the major analysts came with their reviews, and investors noticed that the spin off could not just generate 2 companies, but three or more.

This is a little bit scary because the company can lose its value and this would never be understood rightly by the stockholders and investors. A company with a relevant capital just focused in mobile phones and their applications is good, but two or there more would transform all the "Motorolas" new companies very small in relation to the big players. So, Motorola disappointed many by failing to offer answers to critical questions about the unit’s future on that afternoon conference, because other important questions about the proposed company, including its name, capitalization, key executives, intellectual property holdings, market share goals, reorganization and financial structure were left unanswered.

But, when Greg Brown (actual Motorola’s CEO) was asked to justify the spinoff he gave the following statement: "It would help with clarity of direction for employees and customers [and] help attract top-notch CEO candidates."

Yes, we can say "wow", and we don’t even need to justify, because the CEO didn’t!

Some analysts said that spinning off the mobile handset division will not dramatically alter its current product offering or change the perception that Motorola doesn’t know how to consistently win and keep customers through a wider set of innovative products. No big changes.

If the market sees nothing new in an action that will cost millions off course, If the markets don’t see any possibility to make "extra money", if the investors are disappointed, the markets simply falls down. And that was what happened, the market fell down, from 10,30$ to the lowest close price of the past 5 years (today),  9,21$. The markets always know what is the right thing, and probably the markets think that a SpinOff in this conditions isn’t good. And you can’t say this happens because all the markets were down. It’s totally false, because the markets had a nice week comparing to the others of this month.

Here is a daily graph, just to see the last drops from the news:

dailay Analysis to the Motorola SpinOff

And an yearly graph to show how things aren’t doing well from many time:

iarly Analysis to the Motorola SpinOff


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