UNILEVER: Bulls are displaying their aggression

Proshare

Thursday, December 03, 2015 10.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
UNILEVER reveals that earlier stock was falling down with the formation of double top pattern and making successive lower highs and lower lows. It seems like bears are beating the bulls black and blue and dominating at every nook and corner.

Stock has declined from N46.00 to N30.00 with a sharp sell-off but after arriving at the oversold territory, we saw steep short recovery and it bounced back to N44.00 level.

The bull’s reaction seems that they are approaching N50.00 level and they are not ready to settle down for the time being. All the momentum has been changed from bearish to bullish. From technical perspective, we observed that a bullish divergence of CCI has appeared on the daily technical chart which is providing bullish signal.

Overall stock is trading into the uptrend and sustaining above all major and minor EMA lines. If it sustains above N45.00 level, then it will signal further presence of buyers and will provide more strength to bulls; this could trigger acceleration to the upside with N50.00 as next target. All odds are in favor of the bulls and indicating a bullish signal.

Presently, stock is trading above all major and minor EMA lines and candles are generating bullish signal. Both investors and traders are displaying bullish tendency towards the stock for the time being.



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

A bullish marabuzo candlestick is generating further bullish signal. A bullish crossover on MACD indicator is also favoring the bulls. Both RSI and CCI indicators are providing bullish signal from a negative territory.


Intraday bias remains bullish on the stock as long as N40.00 level remains intact. The N45.00 level is key resistance level followed by N50.00 while N40.00 can be considered as key support level followed by N38.00 level.

Trade Idea:

Based on the charts and explanation above, traders can buy at N43.98 for the target price of N47.00 with the strict stop loss of N38.00. The tentative time frame would be 8-10 days.


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

Related NEWS
 

UNILEVER Records 85 PBT Decline in Q3 15 Results as Analyst Rates Stock Underperform- 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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