Swing Trade Idea – (IP) – November 5, 2020
Our bullish trade for Thursday, November 5th is IP (International Paper Company). IP is part of the Materials Sector (XLB). XLB has experienced a 2.3% gain in the last month and its 6M trend turned bullish on November 2nd.
IP pulled back to the $42 support level recently and bounced higher with strong momentum providing a good risk/reward for a long trade. With a technical score of 9 (out of 10), IP is a very strong stock that will likely continue higher.
As a stop loss, if IP were to trade below $42 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $2.04.
