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.
Posted by Unknown at 5:00:00 AM