Even when the majority of all other stocks are in somewhat of a turmoil, Unilever Plc (LON: ULVR) is holding up relatively well. Although it has retraced lower recently, still, it is trading inside a rising channel formation, which adds a more positive spin on the near-term outlook. As long as the price remains inside that channel formation, we will continue aiming higher.
A good push back above the 4226 level, marked by the low of the 17th of December, could open the way towards the inside swing low area of the 13th of December, which is near the 4290 obstacle. The price may stall there for a while, or even correct back down slightly, but if the bulls remain strong, then we could see the stock traveling higher again. This is when we will aim for the 4341 area, marked by the high of the 14th of December.
On the downside, if the lower bound of the rising channel breaks, this would place the stock below the 4178 support zone, which was Tuesday’s low. Not only that, the stock would also drop below the 200 EMA, which could be seen as an additional bearish signal. The bulls may start abandoning the field then, as ULVR will start forming lower lows. This is when the price might continue falling towards its next potential area of support at 4124, a break of which, could clear the path to the 4054 level, marked by the low of the 6th of November.
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