How High Will International Paper Rally With a Bidder Hot on Its Heels?
Let's dig into the charts and indicators.
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Suzano SUZ is the largest pulp producer in the world, the largest paper manufacturer in Latin America and the leader in the toilet paper market in Brazil. Reports indicate that the company is interested in the assets of International Paper IP.
I have no special knowledge of what may be discussed in boardrooms, so let's check out the charts of IP.
In this daily bar chart of IP, below, I can see that prices have been moving higher the past twelve months. Since late April the share price of IP has moved sharply and quickly higher. Trading volume has been more active the past three months and tells me there is increased investor interest.
The On-Balance-Volume (OBV) line shows a rising pattern since November. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of IP, below, I can see a bottom pattern that has evolved over the past two years. Prices now trade above the rising 40-week moving average line. The weekly trading volume has ramped up in the past four months.
The weekly OBV line has been stable but may now be starting to improve. The MACD oscillator is above the zero line.
In this daily Point and Figure chart of IP, below, I can see an upside price target in the $49 area.
In this weekly Point and Figure chart of IP, below, I can see a potential price target in the $56 area.
Bottom line strategy: I have no special knowledge of what is being discussed in the boardrooms of IP and SUZ, but the charts are bullish and I would look for prices to head higher from current levels.
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