Will Unilever turn, or will it continue to rise beyond 4,373p?

• The chart shows the last 4 months price action for Unilever.
• The shares have broken above a resistance level at 4317p to trade 4373p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -4.2% from 2018 highs; +17.2% from 2018 lows; +5.9% year-to-date.
• 6 Dec, Berenberg said the new CEO is reassuring on 2020 targets.
• 3 Dec Moody’s said Unilever‘s acquisition of GSK’s Indian consumer business will be a good fit.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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 4373p. To do this, you need £2,000.

Let’s assume the Unilever trend continues to 4494p late-Aug highs (+2.7%). Your profit would be £270, 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.