Unilever Nigeria Plc is one of Nigeria’s longest-established consumer-goods companies and is listed on the Nigerian Exchange (NGX) under UNILEVER. The company’s Nigerian operations manufacture and market various products spanning Nutrition, Beauty & Wellbeing, and Personal Care, with manufacturing facilities in Oregun, Lagos, and Agbara, Ogun State.
Current price: N118.30
Rating: Buy
Price projection: N200 and N250
Technical Analysis
In this report, we shall use the following tools and analysis methods:
Elliott’s wave theory to understand the overall market sentiment
Fibonacci tools to determine support and resistance levels
The Relative Strength Index and volume to evaluate the market’s strength
The Money Flow Index to determine the market liquidity
Moving average and MACD to understand the nature of the trend
Top-down analysis to know the best investment position
Elliott wave analysis
Weekly chart: Market overview
On the weekly chart, Unilever remains within wave (4) of Wave I grand cycle. The stock commenced its final corrective phase, retracing to the 0.5 Fibonacci level on the monthly chart. At this level, investors should expect a market recovery phase.
In line with this deep market correction, the stock’s liquidity, momentum, and volume declined. Also, MACD’s bearish momentum strengthened. These readings offer investors good investment opportunities as the stock has potential.
Daily chart: Investment opportunity
Plotting the Fibonacci retracement tool, investors should watch N110 and N100 as strong support levels, with prices projected to N200 and N250. Unilever offers a long-term buy opportunity as liquidity, volume, and momentum remain extremely low. Thus, market players should check for potential support levels.
SWOT Analysis
