The Unilever share price (LON: ULVR) is hanging on to its early gains on Wednesday after it said it was halting all imports and exports of goods from Russia. But the bulls appear to be struggling as upside momentum is weak.
In a statement released on Twitter, the consumer goods giant also said it would cease its media and advertising spending and stop all profit-taking from its operations in Russia. However, it would continue its essential food and personal care product supplies on a retail basis to Russian citizens. The company has also ceased operations in Ukraine but is donating to humanitarian relief efforts.
The Unilever share price is up marginally, as it tries to shake off a weak start to the week.
The weekly chart shows that the gains made on Tuesday and early Wednesday are attempts by the bulls at saving the falling wedge pattern. Monday’s drop violated the lower border of this pattern. However, the rally on Tuesday and Wednesday has formed a hammer candle, right on the 3386.5 support.
If this support is saved, the bulls could initiate a bounce off this pivot towards the immediate resistance at 3701.5. This also tests the wedge’s upper border. A break of 3701.5 completes the wedge break, opening the door for a measured move that targets 4934.5. However, barriers at 4030.0 and 4372.5 must give way if this move is to reach its projected conclusion.
Conversely, if the 3386.5 support level fails, the pattern is invalidated, and the pathway towards 3044.5 will be blown wide open. Below this new southbound target, 2761.0 enters the picture as a potential future benchmark.
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This post was last modified on %s = human-readable time difference 10:50