We wouldn’t blame you if you mistook the lumber price chart with a cryptocurrency. Down more than 70% from its peak in May 2021, lumber’s had astonishing volatility over the past few years.
On a longer-term chart, the 460 handle represents a very long-term support/resistance level. With current Lumber prices just shy of this major support level of 460, could we see a breakout higher? Previous 2 attempts to break this level were rejected sharply and a huge rally ensued.
Additionally, current RSI readings indicate oversold levels which have been useful in picking the past few bottoms.
Overall, we think that lumber could be primed for a move up as it edges closer to the major long-term support level.
Entry at 475, stops at 435. Target at 630.
The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/gopro/
Disclaimer:
The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.
On a longer-term chart, the 460 handle represents a very long-term support/resistance level. With current Lumber prices just shy of this major support level of 460, could we see a breakout higher? Previous 2 attempts to break this level were rejected sharply and a huge rally ensued.
Additionally, current RSI readings indicate oversold levels which have been useful in picking the past few bottoms.
Overall, we think that lumber could be primed for a move up as it edges closer to the major long-term support level.
Entry at 475, stops at 435. Target at 630.
The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/gopro/
Disclaimer:
The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.
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