LYB entering long term support and buy zone
So 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.
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.
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I should also note that insider activity in the stock has also been extremely positive over the last 3, 6, and 12 months. This can indicate surprise positive news or earnings in the near term future or that insiders simply believe their company's stock to be cheap.