Chemical producer LyondellBasell Industries (LYB) started climbing back up the rankings in the SIA S&P 500 Index Report back in October. Its relative strength has really started to increase since it exited the red zone at the start of this year and yesterday it returned to the Green Favored Zone for the first time since June. LYB is currently in 119th place, up 6 spots so far this week and up 103 positions in the last month.
A major breakout is underway in LyondellBasell Industries (LYB) shares. Between June and December, the shares completed a bullish Head and Shoulders base between $70.00 and $90.00. In January, the shares blasted through the $90.00 neckline, successfully retested that breakout point as new support, and launched up through $100.00. Also, its 50 and 200-day moving averages have completed a bullish Golden Cross, confirming the start of a new uptrend.
A measured move from the base and a previous peak align near $110.00 to provide initial resistance with a double count and a round number converging in the $125.00 to $130.00 area. Initial support has moved up from $90.00 toward $95.00.
After bottoming out in September, LyondellBasell Industries (LYB) spent the last few month of 2022 building a base for recovery. This year, the shares have broken out and launched into a new recovery trend, completing bullish Triple Top and Spread Double Top breakouts, snapping a downtrend line, regaining $100.00, and extending the current rally into a bullish High Pole. Also, on a 1% chart, LYB recently completed a Bullish Catapult breakout.
Initial upside resistance appears at the June peak near $111.45, followed by $115.95 which is based on a horizontal count. Initial support appears near $93.25 based on a 3-box reversal.
With a bullish SMAX score of 9, LYB is exhibiting strength against the asset classes.
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