Unilever withdraws guidance - Morning star pattern is a sign of hope
Nicolas Suiffet April 23, 2020 8:43 AM
Unilever, a consumer goods company, posted a 1Q trading update.
Unilever, a consumer goods company, posted a 1Q trading update: "Underlying sales were flat with volume growth of 0.2% and negative price of 0.2%. Turnover increased 0.2%. The unknown severity and duration of the pandemic, as well as the containment measures that may be adopted in each country, mean that we cannot reliably assess the impact across our markets and our business. We are therefore withdrawing our previous growth and margin outlook for 2020."
From a technical perspective, the morning star pattern formed in March on a daily chart remains in play. It is a sign of a reversal in the previous price down trend. However, the daily Relative Strength Index (RSI, 14) failed to confirm the breakout of its neutrality area at 50%. The 50-day simple moving average is still descending and plays a resistance role around the gap opened this morning. The configuration is mixed.
Prices need to break above April 21th high at 4327 in order to validate a bullish signal. It would lead to the validation of a piercing line pattern on a weekly chart. If the resistance at 4327 is broken, look for 4800.
Caution: A break below 3759 would call for a new down trend towards 3415.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.