npatz_2000

WYCKOFF RE-ACCUMULATION, COULD BE A HUGE LONG ON LYB FOR 2015

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NYSE:LYB   LyondellBasell Industries NV
1
I found this stock on a scan for short trades, ironic. At first look everything looks good for a continuation short trade after the gap down on 1/14/15, but on 2nd look the gap down now looks like a classic exhaustion gap. It looks like any short now is a bear trap. We have a tight trading range, a strong uptrend before this correction, this looks like classic Wyckoff re-accumulation. Look at the insane divergence between OBV and price. Price continues to move down but is absorbed by all these buyers, this has to be "smart money" accumulating on fear. This is textbook Wyckoff. No entry right now, but once this stock flushes out the weak demand by running the lows (forcing the stops to trigger) I think this stock blasts off, probably to new highs over the next year. However, this stock could be weeks/months away from an entry, but it is so good that I wanted to share this so that others could add it to their watchlists for 2015. I'm looking at 1/2016 - 1/2017 LEAP's.
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