Lumber's focused bull opportunity produced a 17% annualized return for the bulls from the second week of March to third week of November (see Matrix below). This opp recorded an impressive 397% annualized return after the second week of March. Lumber has been consolidating since the third week of November. Smart money continues to wait on the sidelines until consolidation yields either to a focused bull or bear opportunity.
A weekly close above resistance from 338.70 to342.30 supports the up impulse, while a close below the January 2015 gap from 295 to 302.4 could reverse it. A reversal favors testing of lower support.
On Balance Volume (OBV), a crude measure of trend energy, suggests mild accumulation, which favors the bulls.