The Hindu Business Line : Hindustan Unilever (Rs 242.95): Sell

We recommend a sell in Hindustan Unilever from a short-term perspective. It is evident from the charts of the company that it was on an up move from the support level of Rs 190 from early July. This up move got arrested after encountering resistance at Rs 250, which is a key resistance level.

On August 7, the stock declined forming a bearish engulfing candlestick pattern. This is a bearish pattern that occurs close to a peak. The stock is losing momentum and the daily relative strength index has entered the neutral region from the bullish zone.

Our short-term forecast for the stock is bearish. We expect the stock to decline until it hits our price target of Rs 220 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 252.

Yoganand D.

(The analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. The stop-loss level provided with the recommendation is important. The original view would stand negated if the stop-loss level is breached. There is a risk of loss in trading)

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