International Paper is Different This Time

• Posted by Greg Harmon
• on January 21st, 2015

In early December, International Paper ($IP) made the Top 10 Trades of the Week as it made a 14 year high at 55. The trade ultimately failed as price fell back through the trigger and it has since been building a bull flag in consolidation. This week shows reasons to put the stock back on your radar though.

The chart above shows that bull flag and a possible break of the flag tot the upside. What makes this different than the false break out in December is three things. First the price is clearing the down channel to the upside. Next the RSI is making a higher high for the first time since November. The December highs in RSI were lower highs. Finally the MACD is crossed up, a buy signal. The last two times the MACD attempted a cross in December it failed. Not this time. These alone an be taken as a buy signal, or you can wait for the price to clear the second December high to confirm a higher high in price as well. The break of the flag targets a move to 62.35.

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