LYO. A classic base and breakout pattern.

A consistent pattern in stock markets is a base followed by a breakout in big volume. In the chart of LYO (Lyondell Chemical) we identify a base of tree months and then a breakout of good quality. It´s possible that a pull back to the base occur in the short term, but the pattern is very powerful. In addiction, when we study a long position we like price/book numbers not very high, in this case is less than 3. For a more aggressive trader or investor, that enter the position faster not waiting for a pull back (a pull back that may never occur), a possible stop loss is near 32 usd.