Stock of the day: Unilever
03 March 2023
We will finish this week with an analysis of Unilever, who had an amazing session yesterday and should have a bullish impact for the next few weeks. Unilever climbed by 1.6% on Thursday, which was the largest rise since February 13 when the price rose almost by 3%.
The technical situation here is really interesting! We are currently bouncing off the long-term up-trendline (red) and the horizontal support of 46.7 EUR. We are still under the influence of the bullish breakout from the flag formation (blue) as well. You can see that the current escape from the flag and further rise and correction is almost the same as the one that happened in the middle of 2022. The price then escaped the wedge pattern (lower blue). The price action after the breakout (green) was almost identical in both cases.
History likes to repeat itself, which is why we are bullish here again. As long as we stay above the red up-trend line and orange horizontal support, we have a buy signal. The price breaking below would give us a signal to go short, but chances of that happening are currently rather limited.