IP dominated by bulls lifting the market higher throughout the day
International Paper Company (IP) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IP ended Monday at 36.31 gaining $0.82 (2.31%), significantly outperforming the S&P 500 (0.27%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (IP as at Aug 10, 2020):
Monday's trading range has been $0.80 (2.24%), that's slightly below the last trading month's daily average range of $0.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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. The last time a White Candle showed up on August 7th, IP gained 2.31% on the following trading day.
The stock managed to close back above the 50-day moving average at 35.68 for the first time since July 30th.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further buying might move prices higher should the market test July's close-by high at 37.67.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for International Paper. Out of 261 times, IP closed higher 55.94% 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 54.02% with an average market move of 0.77%.