Unilever is a little like the United Nations, it has operations in just as many countries and it’s businesses vary from margarine to detergents, cosmetics and toothpastes. Its employees are truly multi-national coming from all corners of the world. Unlike the UN, it is not run by a bunch of political hacks that can hardly be distinguished from common crooks. It is therefore a truly global institution in a , for the most part, non-cyclical business. If there are still blue-chips this one certainly fits the bill. It is also one of the few, Shell being the other, world concerns that have endured despite a dual cultural and linguistic history. Here are the charts;
(see also a previous blog!, that fairly accurately predicted events to date) This stock has a p/e in the high 15 and earns about 1.3%. The lines drawn are not channel lines, they simple serve the purpose of illustrating between what points most of the trading on this stock occurs. Forget about EW and intuitively I should think that it is rather evident that you might want to buy this stock near the lower line which it has touched at least 9x, only once , very briefly, going through it by a miniscule margin. When the stock gets above the upper line, a relatively rare occurrence , only 3 x so far, it never stays there very long and then invariable drops right back al the way to the bottom line. The stock is presently well above the line and no sane person should hold the stock! Unless, of course, the perception is that there is no where else to go.
From an EW point of view there is every reason to assume that in the next downdraft the bottom line will NOT hold. There is a “flat” forming with waves A and B complete , or nearly so. C may well have started already and targets +/- $17. The only question now is , is the wedge complete? See below;
Wedges are very accurate patterns but the also have a tendency to fool you by going one level further, but probable the peak is in. In any case the RSI and MACD are warning that a turn is due.
As the previous blog was not coded it cannot be found, so I have repeated those charts below;