That’s it, I closed my trade at 25,60 this morning. I told you I wanted to see the reaction to the 50 Day Moving Average, and again we are seeing some support at this zone, 25,50 to 26,20, which means we might get out of the short trade. If you opened the short trade at 27,80 and closed today at 25,50 you really made more or less 10% profit.

At the moment, It is better to stay out from Nokia (NOK), trying to figure if the stocks will remain lower ofr if there might be a reaction, because, as you know Motorola (MOT) is now above 10$ and going higher. So the question is if Nokia will follow Motorola’s uptrend…

Right now I am out of this two stocks waiting for better oportunitties, but I remain doing little trades at MOT, trying to take some profits on the minor trend formation.

If we add this profit to the last one, we have right now more than 21% which is great!

In terms of fundamental analysis, the finance sector remains very very suspicious(…).

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!