Chemical producer LyondellBasell (LYB) has returned to the Green Favored Zone of the SIA S&P 500 Index Report, after climbing 38 spots on Friday and 78 spots in the last month.
Coming out of a spring recovery rally, LyondellBasell (LYB) shares spent the summer trending sideways with higher lows and lower highs forming a symmetrical consolidation triangle. Earlier this month, the shares broke out over $72.50, completing the triangle and signaling a new advance which continued with Friday’s breakout over $74.00.
Initial upside resistance appears near $85.00 and then the $92.50 to $95.00 area, both zones where previous resistance converges with measured moves from the triangle. Initial support appears near $70.00, then the 50 and 200-day moving averages near $67.50. Also note that the averages are close to making a bullish golden cross which would confirm renewed accumulation.
LyondellBasell shares have been accelerating upwards in recent weeks, first completing a bullish Double Top, then a bullish Double Top. Currently the shares are challenging $75.85 where a breakout would complete a larger bullish spread double top and confirm the start of a new advance.
On a breakout, next potential resistance may appear at a previous column high near $85.45, followed by the $90.65 to $92.50 area where two horizontal counts cluster with a previous peak. Initial support appears near $67.35 where a 3-box reversal and a previous breakout point converge.
With a perfect SMAX score of 10, LYB is exhibiting near-term strength across the asset classes.
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