Should I invest in Nokia?

Nokia shares extended their correction from the recent highs after many financial analysts warned that “Wallstreetbets” traders could face serious trouble. In less than several days, Nokia shares have advanced from $4 above $9.5, and the current price stands around $4.7.

Nokia Corporation is a Finnish multinational telecommunications, information technology, and consumer electronics company founded in 1865. The company operates across over 100 countries and has more than 100,000 employees.

Nokia shares continue to lose their value this trading week after the stock price exploded and advanced more than 200%. Many bullish talks from the popular Reddit WallStreetBets forum influenced this stock price move, and there is no other reasonable explanation for this.

WallStreetBets is an individual message board on the popular internet forum reddit.com on which users discuss potential moves on the financial markets. Users of WallStreetBets usually promote high-risk leveraged trades and treating stocks like Nokia.

The U.S. Securities and Exchange Commission announced this Friday that it is monitoring social media traders, brokerages, and potential wrongdoing.

“The U.S. Securities and Exchange Commission is working closely with other regulators and stock exchange “to ensure that regulated entities uphold their obligations to protect investors and to identify and pursue potential wrongdoing. The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities,” said SEC in a statement.

It is also important to say that Robinhood resumes limited buys of squeeze stocks while it is also restricting crypto trading due to extraordinary market conditions. “You can now make whole limited share buys off of the securities that were temporarily position closing only,” Robinhood told users in an alert.

There are some obvious risks when it comes to investing in shares of this company; Nokia has a relatively large debt and the book value per share is less than $4. Nokia shares could again reach the $9 resistance, but my opinion is that there are certainly better long-term investment opportunities at the moment.

Nokia shares are currently trading above the $4 support level, but the technical picture implies that the price may fall even more in the upcoming days.

The critical support levels are $4 and $3; $6, $7, and $8 represent the resistance levels. If the price jumps above $6, it would be a signal to buy Nokia shares, and the next target could be around $7.

On the other side, if the price falls below the $4 support level, it would be a firm “sell” signal.

Nokia shares continue to lose their value this trading week after the stock price exploded and advanced more than 200%. There are some apparent risks when it comes to investing in Nokia shares, and probably it is not the right moment for buying this stock.

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