International Paper Co. - IP - close: 43.10 change: -0.33

Stop Loss: 44.10
Target(s): 37.50
Current Gain/Loss: unopened

Entry on November -- at $--.--
Listed on November 07, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 4.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
IP is in the consumer goods sector. The company paper and packaging products. The stock peaked with a bearish double top near the $50.00 level in August and September. Since then shares have underperformed the market. Most of October saw IP continue to fail at technical resistance at its simple 200-dma. Now the stock's sell-off is threatening a breakdown below support near $43.00 and its 300-dma.

Tonight we are suggesting a trigger to launch bearish positions at $42.80. If we are triggered at $42.80 our target is $37.50. However, the $40.00 level could be round-number support. More conservative investors might want to exit near $40 instead. FYI: The Point & Figure chart for IP is bearish with a $36.00 target.

Trigger @ 42.80

Suggested Position: short IP stock @ (trigger)

- (or for more adventurous traders, try this option) -

Buy the DEC $42 PUT (IP1322x42) current ask $1.03

Annotated chart:

Weekly chart: