LYB breaks above 20-day moving average for the first time since June 16th
LyondellBasell Industries NV Class A (LYB) Technical Analysis Report for Jul 06, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LYB ended Monday at 68.25 gaining $1.29 (1.93%), slightly outperforming the S&P 500 (1.59%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LYB as at Jul 06, 2020):
Monday's trading range has been $2.49 (3.61%), that's below the last trading month's daily average range of $3.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LYB.
The stock managed to close above the 20-day moving average at 67.27 for the first time since June 16th. When this moving average was crossed above the last time on June 12th, LYB gained 1.01% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for LyondellBasell. Out of 159 times, LYB closed higher 57.23% 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 66.04% with an average market move of 1.47%.