Lumber - Range or breakout
Updated
Lumber is building an interesting range bottom pattern.
The rising highs indicate somewhat buying interest, but the current resistance at 373 held multiple times in the past.
If it does act as resistance once again, it might be possible to time a short trade on the lower timeframes. The last daily candle already indicates slowing momentum.
A break above the resistance, on the other hand, could open the room for a potential gap close, back into the 442 region.
When developing a trading plan, it is always a good idea to come up with BOTH a buy and a sell scenario so that you stay open-minded and are not locked into just a single possibility.
The rising highs indicate somewhat buying interest, but the current resistance at 373 held multiple times in the past.
If it does act as resistance once again, it might be possible to time a short trade on the lower timeframes. The last daily candle already indicates slowing momentum.
A break above the resistance, on the other hand, could open the room for a potential gap close, back into the 442 region.
When developing a trading plan, it is always a good idea to come up with BOTH a buy and a sell scenario so that you stay open-minded and are not locked into just a single possibility.
Trade closed: target reached
Precise target hit!
I have been trading for 15 years!
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> Trend Rider indicator: tradeciety.com/trend-rider-indicator/
> Free weekly trading webinar: tradeciety.com/webinar/
> Free blog: tradeciety.com/blog
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