Unilever (Friday’s close US$59.56) traded in a large wedge pattern made up of equal lows near ±US$39 and higher highs from 2013 (not shown) to 2016 (dashed lines). The stock had a sharp breakout from this pattern in early 2017 and reached a high of US$60.13 in October, 2017 (A). Subsequently, the stock traded within a descending triangle formation for about one year (dotted lines). The ensuing rise above the top of this pattern signalled a breakout and the start of a new major up-trend (B).
Unilever is currently in the midst of a minor correction toward its 40-week Moving Average (40wMA), but only a sustained decline below ±US$57 would be negative.
Point & Figure measurements provide targets of US$64 and US$69. Higher targets are visible.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Monica Rizk
Ron Meisels