Approaching Resistance - International Paper

Published on Wednesday, 22 February 2012 09:20 Written by TradersHuddle Wire

New York, February 22nd (TradersHuddle.com) - Shares of International Paper Company (NYSE:IP) are trading very close to calculated resistance at $33.88 with the current price action closing at just $33.32 placing the stock near levels that make it difficult to buy.

International Paper Company (NYSE:IP) produces and distributes printing paper, packaging, forest products, and chemical products. The Company operates specialty businesses in global markets as well as a broadly based distribution network.

International Paper's current stock range is defined by current calculated support defined at $30.5 and by the resistance level at $33.88, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for International Paper, as the stock is well above support, however, as the stock pulls back towards $30.5 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $33.88 then traders will get an opportunity to enter International Paper stock by establishing a position as the stock moves to a higher range.