LYB closes lower for the 3rd day in a row
LyondellBasell Industries NV Class A (LYB) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, LYB ended the month 10.03% higher at 63.76 after losing $0.64 (-0.99%) today, notably underperforming the S&P 500 (0.48%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (LYB as at May 29, 2020):
Friday's trading range has been $1.84 (2.88%), that's below the last trading month's daily average range of $2.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LYB.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on April 24th, LYB actually gained 4.72% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for LyondellBasell. Out of 111 times, LYB closed higher 58.56% 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 70.27% with an average market move of 2.83%.