HELLO HULHindustan Unilever (HINDUNILVR) has been underperforming against nifty since it took a hit on poor earnings. However, it now presents a low risk opportunity to go long on the stock.
The stock has been trading in a broad range of 2440-2700 levels for over a year now and is getting ready to bounce again from the lower level of the Range. The orange circles show the bottom formation in process, along with a visible RSI divergence.
The FMCG sector overall has been lagging behind as compared with the other sectors, and while there are many more opportunities in this sector, HINDUNILVR certainly seems to its hit its upper end of the range again and potentially make a new ATH.
My Stoploss on this trade would be 1.5 ATR (48 points), 1st Target would be anchored VWAP and resistance at 2568 while the 2nd target would be 2715 and final target as ATH above 2860-2900.
A good risk reward setup to pursue.
