Trading in a defined range - non correlated price action
IP finally broke out above the heavy horizontal resistance of $37.35 which was the April high. The move actually happened as the rest of the market sold off dramatically demonstrating IP is somewhat of a non correlated asset right now.
The $37.35 line has now been tested and confirmed as support once on the daily chart. I sold my calls too early last week and did not capture the entirety of the move up. But I did enter a small position on the retest of that $37.35 which has performed so far. The Daily 20MA will meet this horizontal support within the next few trading days as well which should only serve to strengthen it.
While there have been some pushes above the resistance line seems to be $38.60-65 which correlates to the bottom of the gap up on June 5th. It is certainly possible to push above this now but it so far has appeared fairly touch at the moment.
That being said a 4-5% tight trading range is pretty great. I am not currently shorting but would consider it if we got higher to the $39.50 range depending on other indicators.
Still in the RSI wedge on the Daily. MACD looking bullish as well.
Most importantly is that it's trading in a non correlated pattern to the larger indices. I think this is because the stock overall is not being day traded by retail, and moves according to institutional buyers/sellers.
The $37.35 line has now been tested and confirmed as support once on the daily chart. I sold my calls too early last week and did not capture the entirety of the move up. But I did enter a small position on the retest of that $37.35 which has performed so far. The Daily 20MA will meet this horizontal support within the next few trading days as well which should only serve to strengthen it.
While there have been some pushes above the resistance line seems to be $38.60-65 which correlates to the bottom of the gap up on June 5th. It is certainly possible to push above this now but it so far has appeared fairly touch at the moment.
That being said a 4-5% tight trading range is pretty great. I am not currently shorting but would consider it if we got higher to the $39.50 range depending on other indicators.
Still in the RSI wedge on the Daily. MACD looking bullish as well.
Most importantly is that it's trading in a non correlated pattern to the larger indices. I think this is because the stock overall is not being day traded by retail, and moves according to institutional buyers/sellers.
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