Unilever PLC Stock Analysis: ULVR Took A U-Turn At $3949.00 Level
- Unilever PLC’s stock price broke through a short-term downtrend and surged toward $4240.5 level.
- The ULVR formed the double bottom chart pattern at the $3949.00 level, showing signs of reversal.
- This stock price is currently trading above 20, 50, 100, and 200-day EMAs.
The Unilever PLC stock price recently broke through the short-term downtrend that started from July 28 to August 25. During this trading session, the price dropped nearly -7.10%. However, now the stock price is surging toward the previous resistance at the $4240.5 level by taking support at the $4076.5 level. This level seems strong enough to sustain the price above.
The double bottom pattern signifies the market reversal period. The stock price has recently formed this pattern at the $3949.00 level. It continues to surge in the opposite direction until it reaches the previous resistance level. If the stock price successfully breaks out the $4240.5 level, it will probably go for the next resistance at the $4481.5 level.
Source: LON: ULVR by Tradingview
On April 28, 2023, the stock price started to drop from the $4481.5 level. This fall changed the direction of stock price into nearly a ranging scenario but after taking support several times at the $3949.00 level.
The price is ready to get back to where the price drop started and it took the support from $4076.5 level to strike the resistance.
Will Unilever PLC Stock Price Break the $4240.5 level?
The ULVR stock price got good support from the $4076.5 level. This level will probably become a key point for the stock price to strike that resistance level at $4240.5. It will continue to go for the next resistance level at $4481.5
On the other hand, if the price fails to sustain above this level and the support breaks down, it will continue to trade in a downtrend until it reaches the major support level at $3819.5.
Is the $3949.00 Level Reliable to Sustain Price Above?
Source: LON: ULVR by Tradingview
As per the technical analysis, the stock price took support from the $3949.00 level more than 3 times. It means the buyers do not want to lose below this level, which makes it a major support level. The price is currently trading at a $4116.00 level above the 20, 50, 100, and 200-day EMAs signifies the Uptrend.
MACD is also showing the increase of volume on the bullish side with the signal averaging line suggesting the price will continue uptrend. The RSI averaging lines are swinging high and higher low indicating the bullish strength.
Technical Levels
- Resistance Levels: $4240.5 and $4481.5
- Support levels: $3949.0 and $3819.5
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment or any other advice. Investing in or trading stock comes with the risk of financial loss.
