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
