The technical picture of the Unilever N.V. stock (AMS: UNA) on our daily chart shows that after a strong reversal higher in the first days of March, the share price continued to move north. At the end of March, the stock broke the medium-term downside resistance line, drawn from the high of November 11th, and is now seen balancing slightly above that line. That said, since the break happened, UNA is currently moving sideways, roughly between the 47.24 and 48.18 levels, which mark the current low and the high of April respectively. Although there is a good chance we may see a continuation move higher, given that the prevailing trend is to the upside, we would still prefer to wait for a break through the upper bound of that range first, just to get a bit more comfortable with the upside scenario.
If, eventually, the stock pops above the aforementioned 48.18 barrier, this could also place UNA above the 200-day EMA. At that point, the share price would be above all of its EMAs, what might attract more buyers into the game. If so, the stock could rise to the 49.56 obstacle, a break of which may open the way towards the highest point of January (also the current highest point of this year), at 50.48.
The RSI and the MACD are currently flat, which supports the idea of standing pat for now. However, the fact that the RSI is above 50 and the MACD is well above zero, but fractionally below its trigger line, suggests that more upside could be seen in the near term, as the two oscillators indicate positive momentum.
On the other hand, if the share price drops below the lower bound of the aforementioned range, at 47.24, and falls back below the aforementioned downside line, that may spook new buyers from entering for a while. UNA could slide to the low of March 22nd, at 45.80, where it might get a temporary hold-up. That said, if there is still not enough of new buyers, UNA may continue its journey south, potentially targeting the 44.38 level, marked by the inside swing high of March 2nd and 3rd.
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