The Canadian Technician

Lumber ($LUMBER) Builds A Base


Just when things look desolate for the lumber industry, $LUMBER turns higher. One of the critical points today, is that Lumber ($LUMBER) soars through the neckline of a base.

First of all the SPURS are breaking out in Purple at the top. This means the symbol is outperforming the $SPX.

$LUMBER snaps a neckline on the chart. Only three days ago, $LUMBER was making lower highs. Finding support above the 50 DMA, surging through the neckline and closing above the 200 DMA is very bullish. The basing pattern built by lumber looks to be intact with the MACD finding support at the zero line after surging above and the gently pulling back to retest it. 

The Rate of Change (ROC) indicators have turned bullish on all time cycles (44,22,11).

It looks good here. What a nice change.

Good trading,

Greg Schnell, CMT

Announcement from the Author

{{ announcement.content }}

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
Subscribe to The Canadian Technician to be notified whenever a new post is added to this blog!
comments powered by Disqus