August 3, 2022
  • August 3, 2022

New records as speculation remains feverish

By on April 27, 2021 0

Timber has exploded higher since mid-January 2021 and its value has hit an all-time high as speculation has turned feverish.

Before there were cryptocurrencies to bet on, the world of commodities offered speculators a place to bet on volatile changes in value that could test the stamina of the strongest individual. In the commodity world, which has a well-deserved reputation for producing massive price changes that can make big or big bucks, wood holds a special place in the sun as one of the most violent commodities in the world. to exchange.

Lumber is now at record highs, and since mid-January of this year the price of random length lumber per 1,000 board feet has risen from nearly $ 630.0 to $ 1,420.0.. The timber trade is not for the weak; speculators must be prepared to deal with large and rapid changes in values. Lumber contracts trade through the CME and the commodity often produces up and down limit movements that can lock traders into positions that can become rather uncomfortable and expensive, to put it mildly.

Having said that, lumber can also produce huge profits for the lucky trader. With the commodity crossing record highs, wood mapping technically becomes a bit of a guessing game when attempting to factor in resistance levels. Wood may seem like a boring commodity, but it moves at a lightning pace. Due to its lack of large trading volumes, timber is not immune to price manipulation by big players who have a legacy of causing havoc. The current price of lumber is crossing near the junction of 1420.0, and the resistance above could turn out to be 1440.0 to 1475.0.

However, the psychological level of 1500.0 could also prove attractive to speculators as a higher target.. Traders are urged to only use limit orders when participating in lumber. Price fills can be quite sketchy and have a notorious reputation for falling short of expectations if limit orders are not used. Take-profit and stop-loss orders are also a key tactical element when trading wood.

Conservative traders, if there is such a thing in the lumber market, may want to wait for pullbacks to support levels if they plan to buy positions and try to ride the uptrend. Those speculators who have the courage to face the bullish trend in timber and wish to sell the commodity via CFDs on their broker’s platform are advised to use all of their risk management tools wisely as well. The price of lumber has climbed, the US housing market is strong and speculative positions have grown massive in the commodity.

Short-term outlook for lumber:

Current Resistance: 1440.0

Current support: 1384.0

High Goal: 1475.0

Low target: 1325.0