UNILEVER CEO TO LEAVE, STOCK WEAK BELOW MA5
Unilever is currently trading at 4239.40-lower by 0.48% as compared to the previous closing.
In recent news, Unilever announced earlier today that its Chief Executive Paul Polman was retiring and would be succeeded in January by Alan Jope, the head of the Anglo-Dutch group’s beauty business. CEO Polman’s exit comes after the company was forced to scrap a plan to move the consumer goods group’s headquarters to the Netherlands in October, following an investor row.
Newly appointed CEO Alan Jope is the boss of the beauty and personal care division which is Unilever’s largest, accounting for almost half of group annual profits. He is also a former leader of its China business and has long been seen as a possible successor to CEO Polman.
On the new CEO’s agenda will be Unilever’s bid for GSK’s Indian Horlicks nutrition business, where it is competing against consumer giant Nestle. as well as handling any fallout from a possible no-deal Brexit as Britain is due to leave the EU in March next year.
On the technical front, the RSI is currently at 54.88% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger Bands but is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-STOP SELL AT 4237 TAKE PROFIT AT 4219 STOP LOSS AT 4247