Nokia Bulls Have One Level Left to Defend After 52% Crash From June Peak

Nokia (NOK) stock traded at $8.44 on Wednesday, down 5.54% intraday, after sellers pushed the price to the 0.786 Fibonacci retracement at $8.50. It is the last major support above the January low of $6.06.

The drop extends Tuesday's 5.6% slide and deepens a decline that started at the June peak of $17.45. NOK has lost roughly 52% of its value in less than two months.

Why Nokia Stock Is Falling Again This Week

Part of this week's weakness was mechanical. Tuesday, July 28, was the ex-dividend date for Nokia's quarterly dividend of 0.04 euros per share, which will be paid on August 6.

However, the adjustment explains only about 0.5% of the move. The rest reflects profit-taking that has continued since last week's post-earnings breakdown, when investors sold the memory shortage outlook rather than the strong quarter.

Analysts have also started trimming expectations. On July 27, Deutsche Bank lowered its Nokia price target to 11.50 euros from 13.50 euros, while keeping a Buy rating on the shares.

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