Wednesday, April 21, 2010

Wednesday Commodities Round-Up

In thinking about the housing market, I realized I haven't talked about lumber futures in -- well, a very long time. So, here are the charts:

Starting in 2005, lumber prices started a 4-year downward sloping channel line. In retrospect, this should have been a dead giveaway of problems in the US housing market.

On the weekly chart, notice that prices have clearly moved through key resistance areas.

a.) Prices are now in a clear uptrend.

b.) Prices have gapped higher in several situations

c.) The EMA picture is very bullish - all the EMAs are moving higher, the shorter EMAs are above the longer EMAs and prices are above the EMAs and are using the EMAs as technical support.