ULVR.L unable to break through key resistance level
Unilever (ULVR.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
ULVR.L finished the week -1.25% lower at 4100.00 after gaining £8.00 (0.2%) today on high volume, outperforming the FTSE 100 (-0.36%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ULVR.L as at Jan 11, 2019):
Friday's trading range has been £63.50 (1.55%), that's slightly above the last trading month's daily average range of £62.25. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ULVR.L. Prices continued to consolidate within a tight trading range between 4053.50 and 4150.00 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on July 2, 2018, ULVR.L actually gained 1.54% on the following trading day.
Prices are trading close to the key technical support level at 4070.50 (S1). Unable to break through the key technical resistance level at 4132.00 (R1), Unilever closed below it after spiking up to 4150.00 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the close-by swing low at 4054.00 where further sell stops might get activated. Further selling could move prices lower should the market test December's nearby low at 4046.00.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Unilever. Out of 147 times, ULVR.L closed higher 53.06% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.02% with an average market move of 0.50%.