LUMBER (Random Length)

Lumber price hits strong resistance at 327 levels and is likely to pull back. Horizontal support/resistance levels provide valuable information on the supply and demand relationship. Lumber is an important commodity for the housing market. Over the past three years prices have been consolidating in a wide range between 150 and 330 levels. Higher lows on the price chart shows increasing demand over the past three years but also failure to record a new high since 2010 signals there is enough supply around 327 levels. It is now the 3rd time Lumber is testing the strong resistance are. Pull back is likely and this could have implications on the housing market. Breakout above 327 levels will be extremely bullish for Lumber. This is an important long-term chart.