LYONDELLBASELL INDU-CL A (NYSE:LYB) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:LYB.
What is the technical picture of NYSE:LYB telling us.
ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.
We assign a technical rating of 7 out of 10 to LYB. Although LYB is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.
- The long and short term trends are both positive. This is looking good!
- LYB is part of the Chemicals industry. There are 119 other stocks in this industry. LYB outperforms 70% of them.
- LYB is currently trading in the upper part of its 52 week range. This is a good signal, certainly because the S&P500 Index is currently trading in the lower part of its 52 week range.
- Looking at the yearly performance, LYB did better than 88% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
- In the last month LYB has a been trading in the 101.41 - 116.01 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.
Why is NYSE:LYB a setup?
Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:LYB this score is currently 9:
Besides having an excellent technical rating, LYB also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 108.29, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.
How to trade NYSE:LYB?
For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.
This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.
Our Breakout analyzer lists more breakout setups and is updated daily.
