Will Unilever break support, or will it rise again to 4263p?

• Support at 3943p since May; Now 3989p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 4263p?
• Shares -7.0% from 2019 highs; +2% from 2019 lows; -3.1% year-to-date.
• 4 Feb: Jefferies says Unilever results not as bad as they Look
• 1 Feb: Berenberg says guidance disappoints, but Unilever remains a leader
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Unilever – An Example

Let’s say you like the Unilever chart and you think the price is heading back towards 4263p again. You decide to buy exposure to £10,000 worth of Unilever using a CFD, at the current price of 3989p. To do this, you need £2,000.

Let’s assume Unilever rises back to 4263p highs (+6.8%). Your profit would be £680, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Unilever falls 3% and hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.