IP finds support at 200-day moving average
International Paper Company (IP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IP ended the week -0.85% lower at 43.19 after losing $0.26 (-0.6%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.35 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, IP lost -2.36% on the following trading day. Closing below Thursday's low at 43.22, International Paper confirmed its breakout through the previous session low after trading up to $0.23 below it intraday.
Daily Candlestick Chart (IP as at Feb 14, 2020):
Friday's trading range has been $0.82 (1.89%), that's slightly below the last trading month's daily average range of $0.94. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IP.
After trading as low as 42.99 during the day, the market found support at the 200-day moving average at 43.17. Prices are trading close to the key technical resistance level at 43.83 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for International Paper. Out of 13 times, IP closed lower 69.23% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 61.54% with an average market move of -0.43%.