Market Bulls Hope Lumber Prices Breakout To The Upside
Chris Kimble | Jun 13, 2019 12:50PM ET
For the past decade, lumber prices have traded within a broad rising trend channel.
See (1) on the weekly lumber chart above. Recently, lumber hit the bottom of that channel and began to bounce higher. This could be good news for the S&P 500 and stock-market bulls.
The past two times that lumber bounced off the lower channel and broke out above its short-term declining trend line (2), it sent a bullish signal for both lumber and the S&P 500.
Currently, lumber is testing its short-term declining trend line (3) and that may send an important message to the S&P 500 once again.
So all you stock bulls who are hoping for a breakout at (3), stay tuned.
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