For the first time since 2013, International Paper (IP) returned to the Green Favored Zone of the SIA S&P 500 Index Report on Friday after climbing 18 spots in one day and 84 places in the last month.
Late last year, International Paper (IP) snapped out of a long-term downtrend but faltered short of $45.00 and turned downward again. Since bottoming out in March, the shares have been under renewed accumulation, climbing in a rising channel of higher highs and higher lows. The shares once again have broken out of their long-term downtrend, and this time, they have also broken out over $45.00, confirming that a new uptrend is underway.
Next potential upside resistance tests on trend appear near the $50.00 round number, then prior peaks near $54.00 and $59.00. Initial support moves up toward $44.00 from the $39.00 to $40.00 area.
Back in September, International Paper (IP) snapped out of a downtrend, clearing $37.50, signaling the start of a new uptrend which has continued with the shares completing a bullish Spread Double Top sandwiched by two bullish Double Tops. Last week, the shares broke through previous resistance near $45.00, confirming that accumulation continues.
Next potential upside resistance appears in the $49.50 to $51.50 area where vertical/horizontal counts converge with the $50.00 round number, followed on trend by previous column highs near $53.65 and $58.00. Initial support appears near $42.30 where a 3-box reversal converges with a previous breakout point.
With a bullish SMAX score of 9, IP is exhibiting near-term strength against the asset classes.
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