- Summary:
- The past few weeks have seen the Unilever share price continue to gain despite challenging market conditions.
Despite the year-to-date data showing that Unilever is down by 2 per cent, the past few weeks have seen the Unilever share price continue to gain despite challenging market conditions. This week, the prices are already up by one per cent. The bullish trend is also looking likely to continue today, with today’s trading session showing the markets to be relatively bullish.
In the past few weeks, Unilever’s share price has also been affected by the ongoing court case, where it was sued by Ben & Jerry’s. According to reports, the lawsuit stemmed from the sale of Ben & Jerry’s ice cream operation to a local company. Ben & Jerry’s had earlier indicated they would be banning their products from being sold in the occupied Palestinian Territory.
However, Unilever has insisted that the sale of the business is done and dusted. They also insisted that they retained the right to sell the ice cream business in question. Although the controversy did not drag for long and looks to not have affected Unilever negatively, it showcased how the company’s operations can change drastically.
Unilever Share Price
When looking at the daily chart below, you should note that Unilever’s share price has continued to rise despite the rising cost of living and inflation. This is important because it has made the operations of the company much more expensive. With prices of Unilever products increasing due to rising costs, customers have also been forced to cut the amount they are spending, which is likely to affect the bottom line of the company.
Therefore, based on the current economic data, there is a high likelihood that the gains made in the past few weeks will see a reversal. My Unilever share price prediction expects the prices to drop. There is a high likelihood that we will see the prices trading below the 3,835 support level soon.
There is also a high likelihood that, if the economic conditions continue to worsen, we will see Unilever’s share price dropping to trade below the 3,500 psychological level, which may trigger further sell-offs. My analysis will, however, be invalidated by the positive consumer price index data.
Unilever Daily Chart
