Will Unilever turn, or will it continue to rise beyond 4,300p?

• The chart shows the last 2.5 months price action for Unilever.
• The shares have broken above a resistance level around 4250p to trade 4287p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -5.1% from 2018 highs; +16.2% from 2018 lows; +3.9% year-to-date.
• 9 Nov: Unilever considering $1bn bid for China’s Weimeizi, says South China Morning Post
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Unilever – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Unilever using a CFD, at the current price of 4287p. To do this, you need £2,000.

Let’s assume the Unilever trend continues to 4449p late-Aug highs (+4.8%). Your profit would be £480, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Unilever breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.

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