Trading Edge: Bullish Short Term Bias On International Paper

?International Paper (IP) has been trading down for the last 8 consecutive sessions. I backtested the stock to see if there was any shooter term edge on buying it on weakness. Here are the results:

$IP has been trading down for the last 8 consecutive sessions;

$IP is trading above the 200-day SMA;

After similar occurrences in the past $IP has rallied over the next the next 1 to 5 (T+1 to T+5) trading sessions on average 1.06% and 3.98% respectively with winning rates of 64% and 61%;

Over the last 16 years, a similar sequence has occurred 28 times;

Please remember that “on average” does not mean “every single time”;