Why the drop goes beyond the dividend
Tuesday was the ex-dividend date for Nokia's quarterly payout of 0.04 euros per share, which will be paid on August 6. But that adjustment explains only about 0.5% of the move. The rest, traders say, reflects profit-taking after last week's post-earnings breakdown. On July 27, Deutsche Bank lowered its price target on Nokia to 11.50 euros from 13.50 euros, though it kept a Buy rating. The broader market mood didn't help: Intel dropped 11% after an earnings beat, and profit-taking spread across AI hardware names, hitting Nokia as well.
Technical levels in focus
Sellers pushed the price to the 0.786 Fibonacci retracement at $8.50, the last major support above the January low of $6.06. Nokia lost the 0.618 golden pocket at $10.41 last week on a large spike in volume, a sign of strong seller conviction. The Visible Range Volume Profile shows the heaviest trading nodes near $10.41 and $8.50, meaning those levels are likely to act as resistance and support respectively. The daily Relative Strength Index is at 27, below the oversold threshold of 30, but there's no bullish divergence yet to signal a reversal.
What would change the outlook
If Nokia closes below $8.50 on a daily basis, the next support zone is the $6.06 anchor low — roughly 28% below Wednesday's price. A daily close back above $10.41 would invalidate the bearish outlook. For now, the stock is caught between those two levels, with sellers in control and no technical sign of a bottom.
