Lyondellbasell Industries Outlook - A Mixed Picture With Strong Bearish Technical Signals

Market Snapshot

Takeaway: Lyondellbasell Industries (LYB) is under pressure technically, with bearish indicators dominating and recent price action down -2.01%. Analysts show mixed signals, while fundamentals show some moderate strength. The internal diagnostic score for technical analysis is 1.26 (weak).

News Highlights

• U.S. Adjusts COVID-19 Vaccine Policies – On May 29, the U.S. Department of Health and Human Services updated vaccine approval rules. While this news may not directly affect LYB, it signals a broader trend in regulatory changes that could impact global supply chains and demand for industrial chemicals in the long run.
• China’s Manufacturing Activity Slows, but Slows Less – China’s PMI for May rose to 49.5 from 49.0 in April, indicating slight improvement in factory activity. This could bode well for LYB, which serves the global manufacturing sector, especially as trade tensions with the U.S. ease. However, with PMI still below 50 (contractionary threshold), demand is likely to remain cautious.
• Ethereum and Solana ETFs File With SEC – On May 31, REX Shares filed for Ethereum and Solana ETFs that may redefine how crypto assets are regulated and traded. While this is more relevant to the crypto sector, it highlights a broader market appetite for innovation and regulatory clarity—factors that could affect investor sentiment and capital flows into non-crypto sectors like LYB.

Analyst Views & Fundamentals

Lyondellbasell Industries has received a simple average analyst rating of 2.83 and a performance-weighted rating of 2.09. The ratings are dispersed: 4 Neutral, 1 Buy, and 1 Strong Sell. This divergence shows uncertainty among analysts.

The average rating of 2.83 is slightly neutral and aligns with the current price trend of -2.01%. This suggests that while most analysts aren’t overly bearish, they are cautious and expect a flat or sideways move in the near term.

Fundamental Highlights:

• Total assets turnover ratio: 0.43 (43.14%) – Internal diagnostic score: 3.00 (moderate strength).
• Current ratio: 1.77 (177.39%) – Internal diagnostic score: 2.00 (neutral).
• Gross profit margin: 8.71 (87.12%) – Internal diagnostic score: 0.00 (weak).
• Net cash flow from operating activities per share (YoY growth rate %): -118.67% – Internal diagnostic score: 0.00 (very weak).
• Cash-UP: 0.24 (24.13%) – Internal diagnostic score: 1.00 (very weak).
• Cost of sales ratio: 91.29 (91.29%) – Internal diagnostic score: 4.00 (strong).

While LYB’s cost of sales ratio is strong, its operating cash flow and profit margin are troubling. The company appears to be managing its assets reasonably well (good turnover ratio) but is struggling with profit generation and liquidity.

Money-Flow Trends

Big-money investors are signaling caution, with block-trend negative and block inflow ratio at 49.20%. This suggests institutional players are either selling or avoiding LYB. In contrast, retail investors (Small_trend positive) are slightly more optimistic, with a small inflow ratio of 50.39%.

The fund-flow score is 7.78 (good), which means the overall money flow is more favorable than average. However, the overall trend is negative, indicating that the larger players are not yet fully behind LYB.

Key Technical Signals

Lyondellbasell Industries is facing strong bearish pressure, with 5 bearish signals and 0 bullish signals in the last 5 days. The technical score is 1.26 (weak), and the overall trend is to avoid LYB.

• WR Oversold – Internal diagnostic score: 1.17 (bearish bias).
• Ex-Dividend Date – Internal diagnostic score: 1.00 (bearish bias).
• Dividend Payable Date – Internal diagnostic score: 1.00 (bearish bias).
• WR Overbought – Internal diagnostic score: 2.15 (neutral bias).
• Long Lower Shadow – This pattern usually suggests a potential reversal, but it appears in a bearish context here and adds to the negative momentum.

Key insights from the technical analysis include: "Technical indicators show that the market is in a weak state," and "Bearish signals are obviously dominant."

Conclusion

Lyondellbasell Industries is currently in a technically weak position, with strong bearish indicators and poor price performance. While the fundamentals show some moderate strength and small investors are showing cautious optimism, the analyst ratings are mixed and the technical picture is bearish.

Actionable takeaway: Consider waiting for a pull-back or clearer signs of reversal before taking a long position. Monitor the upcoming earnings report and key catalysts like U.S.-China trade developments, as these could shift sentiment.