From the desk of Thomas Bruni @BruniCharting
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If you’re a market participant, Lumber should be on your radar. The weight of evidence suggests that this market has upside roughly 20% upside from current levels and offers a trade opportunity not correlated to US equities.
Lumber has been in a structural downtrend since breaking down from a symmetrical triangle in early 2015. The decline continued throughout the year, with prices putting in a failed breakdown and bullish momentum divergence at long-term support near 215. After confirming the failed breakdown by closing back above the May 2015 lows, prices consolidated for 5 months and have now broken out above a multi-year downtrend line. [Read more…]