LUMBER

In November I’ve updated the Lumber chart and drew attention to the strong horizontal resistance at 327 levels. This was a 3 year-long resistance and I expected to see a pause after the strong rally. While the price took a breather for few weeks, we haven’t seen much of a pullback from the strong resistance. On the contrary with this week’s strength, Lumber breached above the strong resistance area. Breakout above 327 is extremely bullish for this commodity. 327 levels was tested for the 3rd time over the past 3 years and now the price is above this level. We should watch lumber with a positive bias in the following weeks. We are likely to see higher prices.