LyondellBasell Industries (NYSE: LYB) fell from 2024 highs near $105 and trended lower for about 18 months. It bottomed earlier this year in the low $40s, around $42–$44.
Shares then rose to just above the $71.85–$72.30 area in a matter of weeks. This is a gain of more than 60% from the low.
The $71.85–$72.30 zone is described as a prior consolidation area on the weekly chart. The stock is trading just above it on a weekly closing basis, but there has not been a confirmed weekly close above $72.30.
A confirmed weekly close above $72.30 would set up $84.38 as the next resistance level. That implies a move of roughly 17% from current levels.
If the price fails to hold above $72.30, the $57–$60 range is noted as a support area. The multi-year lows in the low $40s are described as the next downside reference.
The article also cites multiple analyst upgrades, tightening global polyethylene supply, and raised 2026 guidance after cost cuts. It states that the next weekly close may help decide whether the move continues or reverses.
Looking back to late 2025, we were watching LyondellBasell stall at a critical wall around $72. The big question then was whether the 60% run-up from the lows was a genuine reversal or just a bounce. That question has now been answered, as the stock successfully confirmed a weekly close above that zone in January 2026 and has not looked back.
The technical breakout was supported by improving market conditions. We’ve seen North American polyethylene contract prices increase by over 4% since the year began, driven by strong export demand and some competitor production issues. This aligns with recent government data showing the Industrial Production Index for chemical manufacturing rose 0.5% in February 2026, its second consecutive monthly gain.
With the stock now pushing toward the mid-$80s, traders should view that old $72.30 level as the new floor. Selling out-of-the-money put spreads with strike prices below $75 for April and May expiration could be a way to collect premium, betting that former resistance will hold as strong support. This strategy takes advantage of the clear shift in the stock’s technical posture.
However, we must respect that the next major resistance at $84.38 represents the long-term support level that failed back in 2024. For those anticipating a pause here, buying debit put spreads could offer a defined-risk way to play a potential rejection from this significant overhead supply zone. The key is that the primary trend has shifted, and dips are now opportunities rather than signs of collapse.
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