International Paper Company (IP) extended its gains in its latest intraday trading as the stock attempts to correct its main short-term descending trend. However, continuous negative pressure persists from trading below its previous 50-day SMA, which limits its near-term recovery prospects. This comes especially with the emergence of a negative crossover on the RSI indicators after they reached extremely overbought levels in an exaggerated manner compared to the price movement, suggesting the early formation of a negative divergence.

 

Therefore we expect the stock to decline in its upcoming trading, especially if the resistance level of $39.50 holds, targeting again the pivotal support level of $35.55.

 

Today’s price forecast: Bearish