We're seeing the exact same setup in shares of Unilever (UL), the $125 billion London-based consumer goods conglomerate. Like Wells Fargo, Unilever is forming an ascending triangle setup, in this case with a resistance level at $44.50. So, just like the last chart, a breakout above that $44.50 level is our buy signal.
Momentum, measured by 14-day RSI (not to be confused with relative strength), is the side indicator that's adding to the Unilever trade. RSI has been making higher lows since February, an indication that UL's upside momentum is outpacing its corrective days. Since momentum is a leading indicator of price, that's a good sign.At first glance, it looks like UL's chart is full of price gaps. No, that doesn't mean that this name is especially volatile. Those gaps, called suspension gaps, are the result of off-hours trading on the Euronext and London Stock Exchange. From a technical standpoint, you can ignore them. Unilever is somewhat unique in that it's a dual-listed company. For that reason, a similar setup is in play in Unilever (UN), the Rotterdam-based Dutch ADR, with a breakout level at $43.
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