Nokia shares slid 5.54% to $8.44 on Wednesday, edging closer to a key support level at $8.50, defined by the 0.786 Fibonacci retracement. This comes after a steep fall from their June high of $17.45, wiping out about half of the stock's value in under two months.
The recent drop continued Tuesday’s 5.6% decline and was partly shaped by the ex-dividend date for Nokia’s quarterly payout, which accounts for only a small fraction of the slide. Most of the selling pressure seems tied to investors reacting to a gloomy memory chip shortage outlook, despite the company’s solid earnings report earlier this month.
Technical Indicators Signal Last Line of Defense
The stock has already broken through a key $10.41 support, a level tied to the 0.618 retracement, on heavy volume a sign that sellers are firmly in control. Now, the $8.50 mark stands as the final major support before the January low of $6.06. According to trading data, this level coincides with a significant volume node, suggesting it could act as a solid floor if buyers step up.
The Relative Strength Index (RSI) is at 27, indicating an oversold condition that in other cases has led to short-term bounces. Yet, no bullish divergence has appeared, which means downward momentum may persist. Deutsche Bank has recently lowered its price target to 11.50 euros but maintained a Buy rating, reflecting mixed analyst sentiment amid a challenging sector environment that includes pressure on companies like Intel.
