LYB finds buyers again around 63.40
LyondellBasell Industries NV Class A (LYB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LYB finished the month 3.07% higher at 65.72 after gaining $0.77 (1.19%) today on low volume, slightly underperforming the S&P 500 (1.54%). Trading up to $0.98 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 26th, LYB gained 2.49% on the following trading day. Closing above Monday's high at 65.69, the share confirmed its breakout through the previous session high after trading up to $0.34 above it intraday.
Daily Candlestick Chart (LYB as at Jun 30, 2020):
Tuesday's trading range has been $2.63 (4.09%), that's below the last trading month's daily average range of $3.43. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LYB.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 65.91 (R1), the stock closed below it after spiking up to 66.03 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 63.12 in the prior session, LyondellBasell found buyers again around the same price level today at 63.40.
LYB shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 67.65 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for LyondellBasell. Out of 432 times, LYB closed higher 53.01% 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 58.10% with an average market move of 0.53%.