Stock Analysis | Lyondellbasell Industries Outlook - A Weak Technical Picture But Mixed Analyst Views

Market Snapshot

Lyondellbasell Industries (LYB) is showing signs of weakness in the short term, with bearish signals dominating the technical indicators and a recent price drop of 14.58%. Investors are advised to approach with caution due to the unbalanced signal profile.

News Highlights

Recent headlines include a major expansion by Safex Chemicals in India, aimed at increasing production and R&D capabilities in the crop protection sector. This could indirectly influence the broader chemical industry, including Lyondellbasell, by affecting global supply chains and demand.

Meanwhile, shifting US policies on vaccines and technology exports could impact international trade dynamics, which in turn may influence demand and pricing for chemical products in key markets like China and Asia Pacific.

Analyst Views & Fundamentals

Analysts remain divided but largely neutral. The average rating score (simple mean) stands at 2.83, while the performance-weighted rating is 2.70, indicating a moderate consensus leaning slightly bearish. The ratings are consistent overall, with four of six institutions rating the stock as "Neutral."

Key fundamental values include:

• Quick Ratio: 1.04 — internal diagnostic score: 1.02
• Current Ratio: 1.77 — internal diagnostic score: 1.99
• PE Ratio: 205.04 — internal diagnostic score: 1.01
• Cost of Sales Ratio: 91.29% — internal diagnostic score: 1.00
• Net Cash Flow from Operating Activities per Share (YoY): -118.67% — internal diagnostic score: 1.00

The fundamental outlook is mixed. While liquidity ratios suggest reasonable short-term financial health, high costs and weak operating cash flow indicate underlying strain. The scores suggest caution in interpreting long-term value despite some robust balance sheet metrics.

Money-Flow Trends

Big-money and retail flows are currently in negative territory. The overall inflow ratio is 0.48, with negative trends across all investor sizes. The largest block of capital (extra-large) has a slightly lower inflow ratio of 0.47, signaling a broader lack of confidence.

Despite the overall negative trend, the Large trend is positive, suggesting some institutional players are still showing interest. However, with most other categories showing declining inflow ratios, this remains a fragile scenario for Lyondellbasell.

Key Technical Signals

Technically, the outlook is bearish. The internal diagnostic score for Lyondellbasell stands at 1.01, with three bearish indicators and none bullish over the last five days. Key signals include:

• Bearish Engulfing: internal diagnostic score of 1.02
• WR Oversold: internal diagnostic score of 1.00
• RSI Oversold: internal diagnostic score of 1.00

Recent chart activity includes multiple appearances of the WR Oversold pattern between August 5 and August 11, and a combination of WR Oversold and Bearish Engulfing on August 6. These patterns reinforce the downward momentum. The key insight is that the bearish signals are clearly dominant, and the technical environment is weak overall.

Conclusion

Lyondellbasell Industries appears to be in a challenging period, marked by weak technical indicators, mixed analyst ratings, and declining money flows. Investors are advised to consider waiting for a clearer breakout or significant earnings updates before taking a position. For now, the stock’s internal diagnostic scores suggest it's best to avoid or closely monitor developments in the coming weeks.