Nokia stock closed at $ 9.73 on Thursday, down 5.35%, close to the lowest since April 2026. The decline removed the gold fund’s 0.618 Fibonacci level at $ 10.41 and added to the slide that began at the beginning of June.
The selloff followed a second-quarter report that weighed in on estimates but included accelerating demand for AI and warnings of a lack of memory. NOK is now trading about 44% below the June peak of $17.45.
Why Nokia Stock Is Falling Despite Strong Q2 Earnings
Nokia’s second quarter results looked strong on paper. Comparable profit rose 18% year-on-year to €434 million, exceeding the consensus of experts of €382 million. Total sales reached €4.82 billion, up 9%.
Sales of AI and cloud customers doubled to €446 million, while new orders from the division reached a record €2.8 billion. Nokia targets this market after power Q1when the use of the first hyperscaler raised its light business.
However, investors sold the form instead of the quarter. CEO Justin Hoard he warned that the memory shortage will continue until 2027, as the AI industry takes over the DRAM industry and pushes prices up.
“Maybe that’s what we value the most,” Hotard said of the memory problems at the time of his earnings. to call.
In the meantime, the weakness of the legacy continues. Fixed Networks revenue fell 13% as telecom makers slowed spending, and Nokia was guided for third-quarter profit to be flat versus Q2.
The results of this session made things worse. Ericsson it fell nearly 12% on July 14 after showing a decline in comparable prices, dragging telecom stocks lower. A crack inside to remember stocks and broad AI to take advantage added pressure on the stock which was still about 85% for the year as recently as mid-July.
NOK Price Analysis Shows Gold Pocket Running Against Resistance
On the daily chart, Nokia’s stock has been falling since June 3. The Fibonacci retracement from $6.06 in January to June above $17.45 is now showing a decline.
NOK initially lost the level of 0.382 at $ 13.10 in early July. Most importantly, this week it broke the bottom of the gold fund, returning to 0.618 at $ 10.41. This area served as support in April, and its loss suggests that it may act as resistance.
The amount of volume in recent declines is very important. It shows the sentiment behind the selling, which supports the continuation of the downtrend.
The next level is sitting at the 0.786 retracement at $8.50, about 12.6% below Thursday’s level. This level is also related to the combined phase from March and April, which can be strengthened as an important phase. Conversely, a daily close above $10.41 would disrupt the bearish trend.
Nokia RSI Confirms Breakdown As Momentum Turns Bearish
The daily Relative Strength Index (RSI) tells a similar story. Nokia’s RSI has respected the upward trend since November 2025, testing it successfully three times, in February and twice in June.
The brand dropped the line at the end of June. Furthermore, the July breakout was rejected exactly below it, confirming old support as new resistance. Price and RSI have both declined significantly since the rejection.
The RSI is now reading near 32, above the oversold area of 30. A dip below 30 could trigger a short-term breakout, similar to some of the most oversold names in the chip recently. way. However, the bullish trend remains stable as the broken trendline caps recover.
At the moment, the resistance level is at $8.50. A break in stock prices or a strong second-half delivery could revive the AI growth story, but a break below $8.50 could reveal an anchor for the $6.06 low.
A note Nokia’s Profits Are Crushed – And They’ve Been Lowered Closestly Since April appeared for the first time BeInCrypto.
