Stock of the day: Unilever

Today, and for the first time on our portal – Unilever! CFDs on Unilever are quoted in Euros on the Euronext Amsterdam Stock Exchange. Technical analysis tells us that something huge is going to happen here really soon.

As you can see on the chart, the price has been inside of a huge symmetric triangle pattern (black) since the beginning of 2020. The end of the triangle is a falling wedge (red lines), which actually allowed the price to break the crucial support of the triangle. And this is where the fun begins. The breakout should be a really strong sell signal but the price is climbing higher. This creates a chance for a false breakout pattern (orange), which may actually be an amazing buying opportunity. The positive sentiment can be supported by the fact that the price escaped from the wedge to the upside. We’re also currently testing the upper line of the wedge as a support and this support is working!

In my opinion, the price closing a day above October highs, so inside of the triangle, will be an amazing buy signal. On the contrary, the price closing a day inside of the wedge will be a signal to sell.