LUMBER Daily Chart Rising Wedge Negative Divergence Channel

Lumber chart shows the rising wedge and negative divergence (blue lines) creating the spank down. Price failing the 20-day MA is very bearish. RSI and stochastics under 50% is bearish. ROC under zero is bearish. The red lines showing lower lows for the indicators are bearish wanting lower lows for price moving forward.

The 50-day MA and lower rail of the red channel form a confluence, along with horizontal support, at 270. That level is for all the marbles. Price losing the 270 level is a large negative for the housing sector; projection is that it will happen. The 20-day MA is critical so the failure there may require a back kiss to confirm the bearish negativity before price falls lower and loses the confluence at 270. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.