UN runs into sellers again around 61.78
Unilever NV (UN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
UN finished Wednesday at 61.23 losing $0.24 (-0.39%), but still slightly outperforming the S&P 500 (-0.46%). Closing below Tuesday's low at 61.43, the stock confirmed its breakout through the prior session low after trading up to $0.29 below it intraday.
Daily Candlestick Chart (UN as at Sep 16, 2020):
Wednesday's trading range has been $0.64 (1.04%), that's below the last trading month's daily average range of $0.79. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UN.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 61.14 earlier during the day, Unilever NV bounced off the key technical support level at 61.20 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 61.93 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 61.78. The last time this happened on Monday, UN actually gained 1.27% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 59.22.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 61.93 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Unilever NV. Out of 353 times, UN closed higher 57.51% 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 57.22% with an average market move of 0.44%.