Nokia (NOK), the mobile phone manufacturer, has broken out and up on positive news stories in the past few days. Trading volume has also spiked, indicating some good momentum here.
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If the stock can continue above a previous 2009 high of around $16.75, it looks like it has a lot of room to go toward $21 in the short term.
The daily chart does look choppy, however, so a long position would definitely be a swing trade with a wide stop. The weekly chart above also looks like an upside down head-and-shoulders pattern ready to break the neckline with the next move up.
By Tim Bourquin, trading content director, MoneyShow.com
