Lumber Bulls Wood Love to See a Break Above (1)
Since April of this year, lumber has put in a strong performance, creating higher highs and higher lows each month, surpassing the February and March highs before the decline. Next hurdle is twin resistance at (1). What happens here could determine the future direction for lumber prices for the short to medium term. Short term sentiment amongst small participants is approx 74% at the time of writing.
Lumber is prone to rapid jumps in the cash/front month contract price that don't hold for very long - Supply catches up and buyers stop putting anything into their inventories if they expect prices not to hold. Most mills are running again.
For anyone looking at trading lumber just be careful, high volatility/low liquidity - very easy for your stops to be run over. The volume/open interest on the CME contract is among the smallest of all exchange traded commodities.
It's a really interesting market to follow!