IP runs into sellers again around 35.51
International Paper Company (IP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, IP ended the month 3.41% higher at 35.21 after gaining $0.20 (0.57%) today, underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IP as at Jun 30, 2020):
Tuesday's trading range has been $1.07 (3.08%), that's slightly below the last trading month's daily average range of $1.26. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IP.
Prices are trading close to the key technical resistance level at 35.88 (R1). After having been unable to move above 35.42 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 35.51. The last time this happened on June 26th, IP actually gained 3.58% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for International Paper. Out of 535 times, IP closed higher 52.90% 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 51.40% with an average market move of 0.36%.