Analyzing LyondellBasell’s Stock Performance in 2018

LyondellBasell’s stock performance

As of August 28, LyondellBasell has gained 4.2% in 2018. Westlake Chemical (WLK) and Olin (OLN) have fallen 8% and 11.2%, respectively, while Eastman Chemical (EMN) has gained 6.7%. However, LyondellBasell didn’t outperform the broader market S&P 500 (SPY), which has gained ~8.4% during the same period.

Analyzing LyondellBasell’s Stock Performance in 2018

LyondellBasell’s gain was mainly driven by its strong quarterly earnings. In the first two quarters, LyondellBasell outperformed analysts’ expectations. LyondellBasell completed the A. Schulman acquisition. LyondellBasell is also working to acquire a controlling stake in Braskem. LyondellBasell and Suez Environnement formed a joint venture and acquired Quality Circular Polymers—a plastic recycling company in the Netherlands. Other positive developments like winning new clients for its PP technology and starting the expansion of the world’s biggest PO/TBA plant contributed to the stock’s positive performance.

Moving averages and RSI

LyondellBasell’s higher stock price caused the stock to trade 3.9% above the 100-day moving average price of $110.64. LyondellBasell has a 14-day RSI (relative strength index) of 59, which indicates that the stock isn’t overbought or oversold. An RSI of 30 or below suggests that the stock is oversold, while an RSI of 70 and above indicates that the stock is overbought.