Intertape Polymer Group Inc. consolidating after a rapid advance

Apr 15th, 2013 – Comment

The MACD and the RSI on the six-month chart are both indicating that the stock may have to give up some of the ground it has gained since the bounce off of $9.00 in March.


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Had a good run with ITP, what do you see for next year?

Thanks,

John

 

Hey John,

Glad to hear that you were rewarded for the risks you assumed with Intertape Polymer Group Inc. (ITP TSX). This will be the third time in the last year that I have examined the case for the company. The first was on May 1, 2012 when the shares were trading for $5.46. The research conducted on Wayne’s behalf suggested that he had a running horse that he should let advance. In hindsight it was the right call. ITP climbed to resistance at $9.00 by August when it started to pull back.

The second analysis was conducted on August 31, 2012 on a request from Eric. He wanted to understand what had caused the selling that drove the shares to $7.17 from the highs. The research indicated that management had informed the market that they expected a soft quarter or two which got the selling started. The charts indicated that there was more selling to come and it was advised that investors take profits and potential buyers be patient. It was the correct assessment as the stock continued to retreat to $6.00 before starting a new advance.

Another investigation of the opportunities and risks associated with ITP will help answer your question of what might be in store for the stock.

 

 

The three- year chart illustrates the pull back to $6.00 in November of 2012 and the advance that ensued. The move to $11.00 has tested support along the 50-day moving average without a breach suggesting that investors are inclined to buy on the dips. There seems to be some consolidation at $11.00 that is coming just ahead of the release of Q1 2013 earnings scheduled for April 22.

 

 

 

 

The MACD and the RSI on the six-month chart are both indicating that the stock may have to give up some of the ground it has gained since the bounce off of $9.00 in March. At this point it doesn’t appear that it will be anything more than a pull back but as always it demands attention. If you in in profit you might consider taking some money off the table with a view towards getting back in at a lower level. If you intend to buy it would be prudent to wait for a better sense of upward momentum. 

Make it a profitable day and happy capitalism!

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