Unilever: ice cream split and leadership change led to 14.35% price forecast surge
Unilever PLC (ULVR) is currently trading at 4,757.00, well above the MA-20 (4,496.10), MA-50 (4,526.86), and MA-200 (4,570.38). This demonstrates significant short-term upward momentum, with the price challenging both medium- and long-term resistance levels, while the Ichimoku Kijun at 4,396.00 serves as dynamic support.
Highlights
- Unilever completed the demerger of its ice cream business, now The Magnum Ice Cream Company N.V., which began independent trading on major exchanges.
- An 8-for-9 share consolidation leaves Unilever with 2,232,630,400 ordinary shares and 2,180,690,335 voting shares after treasury and group shares adjustment.
- Unilever reaffirmed its dividend policy, expects lower restructuring costs in 2025 due to ahead-of-schedule progress, and announced Fernando Fernandez will succeed Hein Schumacher as CEO in March 2025.
Restructuring and leadership changes drive optimism amid share consolidation
Unilever has completed the demerger of its ice cream business, now operating as The Magnum Ice Cream Company N.V., which began trading independently on major exchanges. Following the transaction, Unilever initiated an 8-for-9 share consolidation, resulting in 2,232,630,400 ordinary shares outstanding, with 2,180,690,335 voting shares after treasury and group-held shares are accounted for. The company reaffirmed its dividend policy and noted that the restructuring process is ahead of schedule, with lower restructuring costs expected in 2025, alongside leadership changes including Fernando Fernandez set to succeed Hein Schumacher as CEO in March 2025.
Overbought conditions emerge as weak momentum signals consolidation risk
Momentum indicators offer mixed signals: the MACD on D1 is still bearish, while the ADX points to a neutral trend, indicating limited directional strength. Oscillators such as the RSI, Stoch RSI, CCI, and BBP show recent oversold readings, suggesting sellers were in control until today; however, the session’s gap up and 14.35% advance show strong post-open buying and high volatility. Intraday and short-term oscillators have turned overbought, diverging from persistent weak D1 momentum, which implies potential for near-term consolidation or profit-taking.
Limited upside expected as consolidation and support tests loom
In the short term, the expected price range is 4,650.00 to 4,850.00, which reflects typical volatility relative to current levels. The probability of further upward movement is low (under 20%), increasing the likelihood of a renewed decline. The baseline scenario envisions sideways consolidation in the upper part of the recent range. A bullish breakout above 4,850.00 could lead to further gains despite growing resistance, while failure of support in the 4,650.00 – 4,570.00 zone could accelerate selling and move the price closer to recent moving averages.
Previously it was reported that Unilever opened sharply lower, trading well below its short- and long-term moving averages as strong selling pressure continued across all timeframes. Technical indicators such as a negative MACD, weak ADX, oversold RSI and CCI, and dominance by sellers reinforced intraday bearish momentum, with no nearby support levels identified and consolidation likely within a narrow range.
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