INTERNATIONAL PAPER CO is showing promising signs of setting up for a breakout.

Our stock screener has spotted INTERNATIONAL PAPER CO (NYSE:IP) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:IP.

Technical analysis of NYSE:IP

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to IP. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, IP is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• IP is part of the Containers & Packaging industry. There are 22 other stocks in this industry. IP outperforms 100% of them.
• IP is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so IP is performing more or less in line with the market.
• Looking at the yearly performance, IP did better than 91% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• In the last month IP has a been trading in the 42.26 - 47.30 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of IP

Why is NYSE:IP a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:IP this score is currently 8:

IP has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 46.34. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 45.80, a Stop Loss order could be placed below this zone.

How can NYSE:IP be traded?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.