WFG share price needs to correct to match lumber price crash

Skipper86 Updated   
NYSE:WFG   West Fraser Timber Co. Ltd
Key points:
1. Lumber is down 68%, WFG is only down 25%. WFG rallied with lumber. Lumber will likely stabilize at or below the current price.
2. Momentum channel has been broken
3. MACD has crossed below zero and the signal line has crossed the MACD line
4. Chart colorization is a reflection of MACD crossovers
5. WFG is technically in a bear market at a greater than 20% drop
6. The green line on the price chart is a long-term peak trendline that was rejected off of twice

I will begin a short position Monday 7/19 and will add every day that a new low is made, price target 50, will begin covering in that range.
Trade active:
Entry: 65.61 (short)
Current Price: 71.56
Stop: 78
Target: 50
Trade active:
Entry: 65.61 (short)
Current Price: 67.71
Stop: 78
Target: 50
options hedge rolled into September
Trade active:
Current price: 80.39
This is beyond my stop but my call strike is at 80 so my losses are capped and I'm waiting to see if the bump in lumber is a head fake or not before taking a loss.
Trade closed: stop reached:
Took a loss here, you win some you lose some.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.