Nokia Corporation (ADR) (NYSE:NOK) has started the week on a positive note after a few sessions of correction. It ended the last session with a gain of 3% to the volume of 43 million, a bit more than the daily average of 37 million. The excitement over the stock stems from the rumor of the company building a secret phone and planning to launch it in 2016.
Two years back, the smartphone division of Nokia Corporation (ADR) (NYSE:NOK) was purchased by Microsoft Corporation (NASDAQ:MSFT), along with the exclusive rights to the Nokia brand. A comeback effort in the smartphone category by the Finnish company, if true, would be big news for the market. Two new Android products have already been launched by the Nokia division, in the form of Zlauncher and N1. According to a consultant to the company last year, the company has a lot of very exciting new products in the development phase and looking forward to add much more to its considerable store of patents.
Some analysts are taking this rumor with a pinch of salt as Nokia Corporation (ADR) (NYSE:NOK) has committed a lot to the carrier network business after it purchased Alcatel-Lucent. The company’s continued focus on creating and sharing new technologies through active licensing programs go against a renewed effort to enter the smartphone segment.
The charts on the other hand, show a tremendous collapse in volatility in the last 15 months and the stock may be getting ready for a breakout followed by a huge trending move. The price action in the last 1 year in the range of $7.40-$8.60, roughly, is nothing but noise. As the chart clearly shows, a break above $8.40 would signal a quick rise to $9 levels but the real movement will emerge only when the range of $7.20-$9.50.
