Lyondellbasell Jumps 5.45% As Technical Indicators Signal Bullish Reversal

Lyondellbasell Industries (LYB) advanced 5.45% in the most recent session, closing at $64.01 amid heightened trading volume. This technical analysis evaluates key indicators across multiple frameworks.
Candlestick Theory
The last three sessions formed a Morning Star pattern: a long bearish candle (-9.70% on 07/24), followed by a Doji (07/23), and a strong bullish candle (07/25) closing above the prior consolidation range. Key resistance emerges near $67.50 (07/23 high), while $60.51 (07/25 low) establishes immediate support. The $59.78–$60.70 range from the 07/24 selloff represents a critical support zone.
Moving Average Theory
The 50-day MA (~$66.80) crossed below the 100-day MA (~$73.10) in late June, confirming a bearish intermediate trend. However, the price remains above the long-term 200-day MA ($68.40), preventing full trend degradation. Recent recovery from the $57.34 June low has lifted LYB back above the 50-day MA ($64.20), suggesting potential trend stabilization.
MACD & KDJ Indicators
MACD registers a bullish crossover with the signal line rising from negative territory, aligning with the price rebound. KDJ readings exited oversold territory (KDJ < 20 on 07/24) and now show K-line (52) crossing above D-line (48), supporting near-term momentum. This convergence with MACD reduces false signal risks in the current recovery phase.
Bollinger Bands
July's volatility expansion triggered a breakout below the lower band on 07/24 (-9.70% move), typically signaling oversold conditions. The subsequent rebound pulled prices back within bands, with the upper band now at $66.50. Bandwidth contraction from June's spike suggests normalization of volatility.
Volume-Price Relationship
The 07/25 rally occurred on 5.73M shares – 35% above the 30-day average – validating bullish conviction. Notable distribution occurred during the 07/24 selloff (9.57M shares vs. 3.57M the prior day), creating potential capitulation. Volume trends now support accumulation, with higher volume on up days confirming the recovery attempt.
Relative Strength Index
The current RSI(14) reads 43, rising from oversold (25 on 07/24) but remaining neutral. The 07/24 price low coincided with oversold divergence as RSI failed to reach new lows compared to June's bottom. While not yet overbought, momentum has shifted positively after reaching extreme pessimism.
Fibonacci Retracement
Between the $56.54 June low and $67.50 July high, key retracement levels are $62.84 (23.6%), $61.41 (38.2%), and $60.02 (50%). The 07/25 close above $62.84 reinforces this support level. Confluence exists at $60.50–$61.00, combining the 61.8% retracement and the July price congestion zone, establishing a high-probability reversal area as demonstrated in the recent bounce.
Confluence & Divergence
Multiple indicators align at the $60.50–$61.50 support zone: Fibonacci 61.8% retracement, volume-based capitulation signals, and oversold RSI divergence. The MACD/KDJ convergence strengthens the recovery case. Key divergence occurred in late June when new price lows weren't confirmed by RSI or volume – an early reversal warning. Should LYB breach $67.50 resistance, technical targets shift to the $70–$72 gap from April's breakdown.