LYB closes lower for the 2nd day in a row
LyondellBasell Industries NV Class A (LYB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LYB ended the week 0.61% higher at 82.60 after losing $0.89 (-1.07%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 83.38, the share confirmed its breakout through the previous session low after trading up to $1.50 below it intraday.
Daily Candlestick Chart (LYB as at Feb 14, 2020):
Friday's trading range has been $1.91 (2.28%), that's slightly below the last trading month's daily average range of $2.08. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LYB.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 81.52 (S1).
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the close-by swing low at 81.16 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for LyondellBasell. Out of 316 times, LYB closed higher 59.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.13% with an average market move of 1.13%.