Lyondellbasell
LYB entering long term support and buy zoneSo I just opened a long position here on LYB based on fundamentals and long term technicals. From a fundamental perspective, the company has the second highest forward dividend yield of any S&P 500 materials company (5.76%), the second lowest trailing P/E ratio (7.65), and a reasonably low total debt to total asset ratio (65.15%). NASDAQ.com's earnings forecast also predicts 19% annual EPS growth for 2020, 2021, and 2022. It's rare to find a company predicted to grow like that trading at that low of a P/E ratio, that high of a yield, and a clean balance sheet.
Looking at the monthly chart, you can see that the stock is hitting an area where it has bounced 4 times in the last 4-5 years. Less importantly, you can also see that the stock is right around something of an uptrend line that could potentially offer support as well. I would be a buyer in between the two horizontal lines, but stay away and and sell if you're more of a trader than investor if price goes below that.
