UN closes above its opening price after recovering from early selling pressure
Unilever NV (UN) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, UN finished the week 4.25% higher at 57.36 after surging $1.16 (2.06%) today on high volume, significantly outperforming the S&P 500 (0.5%). This is the biggest single-day gain in over two months. Today's close at 57.36 marks the highest recorded closing price since August 31, 2018. Trading up to $0.46 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (UN as at Mar 15, 2019):
Friday's trading range has been $0.68 (1.19%), that's far above the last trading month's daily average range of $0.45. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for UN.
After trading down to 56.72 earlier during the day, the share bounced off the key technical support level at 56.76 (S1). The failure to close below the support could increase that levels significance as support going forward.
Crossing above the upper Bollinger Band for the first time since February 5th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 54.96 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on February 4th, UN gained 1.81% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2018's high at 58.72 is within reach and we might see further upside momentum should the stock manage to break out beyond.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Unilever NV. Out of 112 times, UN closed lower 58.93% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.82% with an average market move of -0.71%.