Will Unilever break resistance, or will it fall back to 3943p?

• Narrowing 3943-4240p range since September
• Now trades 4225p (at time of writing)
• Will the pattern repeat itself, testing previous 3943p Feb lows?
• Shares -1.3% from 2019 highs; +8.2% from 2019 lows; +2.9% year to date
• 14 Mar: Unilever appoints new COO
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Unilever – An Example

Let’s say you like the range, you think it’s heading back towards 3943p again. You decide to sell exposure to £10,000 worth of Unilever using a CFD, at the current price of 4225p. To do this, you need £2,000.

Let’s assume Unilever fall back to 3943p (-6.6%). Your profit would be £660, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Unilever rises 3% and hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.