Unilever Stock Jumps 3.5% On Technical Breakout Amid Key Resistance Test

Unilever (UL) shares surged 3.49% in the most recent trading session (2025-08-01), closing at $60.47 on above-average volume of 2,718,548 shares. This bullish momentum breaks a four-day consolidation pattern and warrants a comprehensive technical assessment across multiple indicators to evaluate trend sustainability and potential reversals.
Candlestick Theory
Recent price action shows a decisive bullish candlestick closing near the session high ($60.47 vs. high of $60.51) following a hammer formation on 2025-07-31 (low: $58.16, close: $58.43). This signals rejection of lower prices near the $58.15 support level. Key resistance emerges at $62.34 (June 2025 high), while multi-month support holds at $57.35 (April 2025 trough). The $59.50-$60.50 zone now acts as immediate resistance-turned-support following the breakout.
Moving Average Theory
The 50-day EMA ($60.18) has crossed bullishly above the 100-day EMA ($59.82), though both remain below the descending 200-day EMA ($61.95). Current price trades above all three near-term averages (50/100-day), but persistent resistance at the 200-day EMA since May 2025 highlights ongoing long-term bearish pressure. A sustained break above $61.95 would signal trend reversal potential.
MACD & KDJ Indicators
MACD (12,26,9) registers a bullish crossover with histogram bars expanding positively, confirming strengthening momentum. KDJ shows %K (84) and %D (78) converging near overbought territory without immediate divergence, suggesting near-term upside exhaustion risk. While both oscillators align on bullish momentum, KDJ's proximity to overbought levels cautions against aggressive entries at current prices.
Bollinger Bands
Price rebounded from the lower Bollinger Band ($58.15) on 2025-07-31, reaching the upper band ($60.86) in the latest session. Band width contracted 18% during July’s consolidation, with the current expansion supporting bullish breakout validity. Upper band resistance at $60.86 becomes critical; sustained closes above may trigger extended upside volatility.
Volume-Price Relationship
The breakout occurred on 2.72M volume, 19% above the 20-day average but below the capitulation volume of 5.49M seen at April’s $57.35 low. Recent distribution phases (e.g., June’s decline on 4.01M volume) showed stronger conviction than current accumulation. Volume divergence warrants monitoring – follow-through buying above 3M shares would validate bullish sustainability.
Relative Strength Index
14-day RSI at 68 approaches overbought territory but hasn’t breached the 70 threshold. Current readings reflect the strongest momentum since April 2025’s rally from oversold (RSI 28) conditions. While not yet overextended, RSI’s position combined with KDJ’s elevated levels suggests limited near-term upside without consolidation. Historical reversals occurred near 72-75 RSI during Q1 2025.
Fibonacci Retracement
Using the primary swing from $65.87 (September 2024 high) to $57.35 (April 2025 low), current price trades between the 38.2% ($60.60) and 50% ($61.61) retracement levels. Confluent resistance emerges at the 50% level ($61.61), aligning with the 200-day EMA ($61.95). Bullish confirmation requires clearance above this zone, while the 38.2% retracement now provides initial support.
Confluence & Divergence Observations
Strong confluence exists at $60.60-$61.60 (38.2% Fibonacci, 200-day EMA, June swing high). The simultaneous MACD crossover, Bollinger Band expansion, and RSI uptick corroborate near-term bullish momentum. However, negative divergence appears in volume characteristics – recent distribution phases showed higher conviction than current accumulation – and KDJ’s overbought warning. This suggests the breakout requires volume confirmation to overcome the major resistance confluence. Should buyers sustain above $60.60, a retest of the $62.34 yearly pivot becomes probable.