Lumber is Down for the 3rd Day in a Row

The Hourly View for Lumber

  • At the moment, LB1’s price is up $9.2 (1.58%) from the hour prior.
  • This is a reversal of the price action on the previous hour, in which price moved down.
  • Regarding the trend, note that the strongest trend exists on the 20 hour timeframe.
  • Price action traders may also wish to note that we see a pin bar candlestick pattern on Lumber. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
  • Of note is that the 50 hour changed directions on LB1; it is now pointing up. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

Lumber’s hourly price chart is shown below.

LB1

The Daily View for Lumber

  • At the moment, LB1’s price is down $-1 (-0.17%) from the day prior.
  • It’s been a feast for bears operating on the daily timeframe, as Lumber has now gone down 4 of the past 5 days.
  • If you’re a trend trader, consider that the strongest clear trend on the daily chart exists on the 20 day timeframe.
  • Price action traders may also wish to note that we see a pin bar candlestick pattern on Lumber. Given that we see downtrend on the 20 daily candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
  • The moving averages on the daily timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.
  • Divergence between LB1’s price and its RSI may be manifesting. As such, be on the lookout for trend reversal in LB1’s price.

Below is a daily price chart of Lumber.

LB1