IP dominated by bulls lifting the market higher throughout the day
International Paper Company (IP) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
IP ended Monday at 34.73 gaining $0.68 (2.0%), significantly outperforming the S&P 500 (0.38%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IP as at Jun 01, 2020):
Monday's trading range has been $0.94 (2.76%), that's below the last trading month's daily average range of $1.18. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IP.
One bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move above 34.94 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 34.98. The last time this happened on May 28th, IP lost -2.96% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 36.14 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 33.71 where further sell stops might get activated. Trading close to April's high at 37.35 we could see further upside momentum if potential buy stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for International Paper. Out of 538 times, IP closed higher 52.60% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.67% with an average market move of 0.37%.