Unilever holds key support as rebound scenario remains intact

Unilever holds key support as rebound scenario remains intact
Unilever holds GBX 4,500 as rebound potential builds.

​Unilever has given back all of its gains following the strong first-half results and returned to key support around GBX 4,500. At the same time, there has been no clear deterioration in the fundamental backdrop, leaving room for a technical rebound.

Unilever announced an expansion of its 45-year partnership with Galaxy Surfactants through a new Partnership Growth Charter. The companies plan to invest jointly in new surfactant technologies for Home Care, Personal Care and Beauty & Wellbeing, while also strengthening supply-chain resilience and production capacity.

Digitalization of the supply chain remains another operational focus. On August 18, the Economic Times reported that Unilever is expanding its use of AI, connected data and digital twins across demand forecasting, manufacturing and logistics. In particular, the company plans to deploy more than 40 AI-powered digital twins across its manufacturing network over the next 18 months.

Holding GBX 4,500 keeps 200 SMA in focus

ULVR shares have fully erased their post-earnings gains and fallen back toward support around GBX 4,500. This level now becomes the key short-term reference point.

The nearest resistance is the 50-day SMA around GBX 4,600. A sustained move above it could strengthen the recovery and push the shares toward the GBX 4,650–4,750 area.

The 200-day SMA near GBX 4,700 adds further significance to this zone, making GBX 4,650–4,750 the main target area for a potential rebound.

After a decline of more than 10% from the July 28 levels, the base case for the coming days remains a recovery toward GBX 4,650–4,750.

The sell-off looks increasingly stretched

Despite strong first-half results, the initial post-earnings momentum has been fully reversed. This suggests that much of the positive outlook was quickly priced in before ULVR entered a deeper correction.

At the same time, recent developments do not point to a specific fundamental factor that would explain the continued decline. The company remains focused on growth across its core categories, innovation and improving supply-chain efficiency.

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