UNILEVER: Bears are returning home; better to exit from the stock

Proshare

Tuesday, July 14 2015 08.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of UNILEVER reveals that earlier stock was making successive higher highs and higher lows and heading towards upside. It was trading above all major and minor EMA lines and was spreading the bullish momentum everywhere. After arriving at N45.60 level, the bulls could not sustain and was struggling from last couple of weeks. We have seen some choppy session where bulls and bears were unable to move on either side.

 

Then in the last few weeks bears got the advantage and took the price below the moving averages at an initial stage and created the bearish momentum. Presently, stock has arrived at N40 level in the shape of rounding top price pattern which indicates that it may fall further till N36 and N34 level. An uptrend line was also lying on the chart which was providing strength to the bulls but that line has been breached out now which means bears are dominating the bulls aggressively.

 

Investors and traders are displaying bearish tendency towards the stock for the time being.  Presently, stock is trading below all major and minor EMA lines which is generating further bearish signal.



 

To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... Click HERE

 



What Next?

A bearish marabuzo candlestick along with dark cloud candlesticks are generating totally bearish signal and we may see further bearish momentum. A bearish crossover on MACD indicator is also favoring the bears and generating further bearish signal.  Both RSI and CCI are providing further bullish signal from negative territory.  Intraday bias remains bearish on the stock as long as N45 level remains intact. The N46 level is key resistance level followed by N50 whereas N35 can be considered as key support level followed by N30 level.

Trade Idea:
Based on the charts and explanation above, traders and investors that initially waited for the right time to buy the stock can let it come to N35-34 level for the target of N40 and N45 with the stop loss of N30 level. The tentative time frame would be 10-12 days.

NB: Return on Investment based on trade idea above does not take cognizance of brokerage commission charges

Related NEWS

UNILEVER sustains 8-wk downtrend breaks key support- Proshare 

To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... Click HERE

For further details, kindly contact analyst@proshareng.com

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