International Paper Co. rallied from $27.29 (U.S.) to a high of $49.10 (A-B) and then settled in a large horizontal trading range mostly between $43 and $50 (dotted lines). The recent rise to $55.73 signalled renewed investor interest and the start of a new major up-leg (C). Behaviour indicators including the 40-week moving average (40wMA) confirm the positive status. The stock is currently in the midst of a minor pullback toward its 40wMA to provide a good entry level; only a sustained decline below $49 would be negative. Point & Figure measurements provide targets of $59 and $64. The large trading range (dotted lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
