Stock Analysis | Lyondellbasell Industries Outlook - A Bearish Technical Picture But Mixed Analyst Sentiment

Market Snapshot

Lyondellbasell Industries (LYB.N) has seen a recent price rise of 4.87%, but technical indicators are overwhelmingly bearish, with no bullish signals in the last five days. Our internal diagnostic score (0-10) for the technical side is 1.01, signaling weak momentum and a suggestion to avoid entry.

News Highlights

Here are some key stories influencing the broader market:

• Safex Chemicals expanded its manufacturing footprint in India, aiming to boost production capacity and R&D for crop protection solutions. The move could signal growing demand in the chemical sector.
• U.S. policy shifts around chip design software and vaccine recommendations have added uncertainty to global trade and healthcare sectors, potentially affecting industries like LYB that rely on international supply chains.
• ETF assets in Asia Pacific (excluding Japan) hit a record $1.25 trillion in late April, pointing to increased investor appetite for diversified exposure, including industrial stocks.

Analyst Views & Fundamentals

Analyst sentiment for LYB is mixed, with six active firms and a recent 20-day average rating of 2.83 (simple average) and 2.63 (weighted rating). The ratings are mostly neutral, with one "Buy" and one "Strong Sell" in the mix. This dispersion suggests a lack of strong conviction among analysts.

While the recent price has risen, the analyst sentiment does not align with this upward trend. This mismatch may signal caution for short-term traders.

Key fundamentals include:

• Quick ratio: 1.04 (internal score: 1.00)
• Total profit / EBIT: 61.93% (internal score: 1.00)
• Current ratio: 1.77 (internal score: 2.00)
• CFOA (cash flow from operations): $0.0099 per share (internal score: 3.00)
• Cost of sales ratio: 91.29% (internal score: 4.00)
• PE ratio: 205.04 (internal score: 4.00)

Overall, while some liquidity and profitability metrics are in the lower range, others (like PE and cost ratios) suggest structural challenges. The internal fundamental diagnostic score is 3.44, indicating moderate but cautious fundamentals.

Money-Flow Trends

Lyondellbasell is seeing mixed money-flow patterns, with large and extra-large investors showing a negative trend, while small and medium flows remain positive. The overall inflow ratio is 0.48, with block investors contributing 0.48 as well. This suggests that institutional players are cautious, while retail investors remain optimistic.

Our fund-flow score is 7.91 (internal diagnostic score), which we classify as good, indicating that while large flows are negative, the balance of inflows remains constructive for the stock’s medium-term direction.

Key Technical Signals

The technical outlook for LYB is very bearish, with three negative indicators and zero bullish ones in the last five days. The technical score is 1.01, reflecting weak momentum and a high risk of further decline.

Key indicators and their internal diagnostic scores (0-10):

• RSI Oversold: 1.00 – signals overbought conditions turning bearish.
• WR Oversold: 1.00 – another bearish reversal signal.
• Bearish Engulfing: 1.02 – a strong bearish candlestick pattern.

Recent chart patterns:

• 2025-08-06: WR Oversold, Bearish Engulfing, RSI Oversold – a strong bearish convergence.
• 2025-08-11: WR and RSI oversold – indicating potential for further downside.

Overall, the technical indicators suggest that momentum is weak and the market is likely to continue its downward trend. Investors should be cautious of further losses unless a clear reversal pattern emerges.

Conclusion

Lyondellbasell Industries (LYB.N) is facing mixed signals across multiple dimensions. While the price has risen recently, the technical side remains bearish, with a 1.01 internal diagnostic score. Analyst ratings are moderately neutral, and fundamentals show a moderate score of 3.44 with structural concerns.

Actionable takeaway: Consider waiting for a pull-back before entering, especially with such weak technical signals. Monitor the cash flow and cost ratios closely for any signs of improvement. Also, watch for any major analyst upgrades that might signal a shift in sentiment.