Lumber Prices Near Contract Highs
Lumber Futures--- Lumber futures are higher for the 4th consecutive trading session currently trading at 290.50 per board foot up around 2.20 the trading session continuing its bullish momentum after making contract lows just two weeks ago and climbing over 10% from the lows on renewed optimism that the housing market may be bottoming. In my opinion I definitely do not think that the housing market is improving and I do think housing prices will even go lower from these levels due to lack of demand and a very shaky economy, however prices are at stiff resistance of 295 which is the contract high and if it breaks those levels look for the bull market to resume in lumber but if it fails at those levels I would look to be getting short remembering always to use a stop loss in case you are wrong. If you look at the lumber chart over the last six months or so it has been very choppy and it has big rallies up and then it sells off and that's what I think will happen after this large and quick rally which was caused by short covering and renewed optimism. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.
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