I’m going going to review lumber futures prices, starting off by looking at the monthly chart prices.
Monthly Lumber Prices
Lumber prices have been on a long term down trend, but they’ve made a 1-2-3 bottom formation here starting in way back in early 2009.
They have made some progress and come up a bit since then, had a bit of a replacement. Hopefully this is going to turn around, my home town economy is somewhat dependent on lumber so this is always interesting to me.
Weekly Lumber Prices
When we look at the weekly charts I see there’s a bit of consolidation here after this decline.
If we draw a line right along here, this looks pretty solid like it’s got some support in the market.
Daily Lumber Prices
If we go into the daily lumber price charts – we see after this decline. You could consider it a 1-2 and maybe a #3 bottom formation as prices are crossing around these moving averages.
Trading Volume And Prices
The most significant thing for me to see is to see that now, there is more volume in trading as the prices are showing some strength.
Whereas back here, the volume in trading was happening as the price was showing weakness, which indicates that the prices are going to continue going down.
So, the fact that the volume in trading has dried up as the prices have come down to this, is a good indicator, that prices of lumber are probably now going to go up from where they are.
Seasonal Price Trends In Lumber
But generally, Lumber has a seasonal tendency to go up from November until the end of January every year – typically this isn’t really a strong time of they year for lumber prices.
But, I’m hoping Lumber futures prices go up – it looks like they are right now, and I’m kinda likin’ that.
A Review of the Fundamentals Behind 2010 Lumber Prices
I completely nabbed this second video from mikecantwellfl on YouTube because it’s such a good review of the fundamentals, the forces that have been moving the price of lumber throughout the first half of 2010.
Related posts:
