Double Top Formation in Lumber Futures
Looking at the charts for Lumber Futures, I was originally upset that I missed the absolutely insane rally in Lumber going back to the start of 2016. However, no use in getting pissed about the past, let's focus on the present. Lumber just formed a double top with price around 400 going back to 2013.
I am waiting for confirmation of a bearish reaction to the double top, and if it does, would short it right below 385 (most recent support level). If it falls below 385, I would look to take profits at the 340 level. I would hold on to some of the position at that level because 340 presents another layer of support. At this level, it could either bounce on support, or breakdown through it. Would put my stop losses around 355 to protect from a bounce off support.
Anything below 355 should be long term trending bearish and would recommend riding profits while moving your stops down along with your position.
Would love to have a differing opinion to bounce ideas off of on this trade.
All the best,
Brandon
I am waiting for confirmation of a bearish reaction to the double top, and if it does, would short it right below 385 (most recent support level). If it falls below 385, I would look to take profits at the 340 level. I would hold on to some of the position at that level because 340 presents another layer of support. At this level, it could either bounce on support, or breakdown through it. Would put my stop losses around 355 to protect from a bounce off support.
Anything below 355 should be long term trending bearish and would recommend riding profits while moving your stops down along with your position.
Would love to have a differing opinion to bounce ideas off of on this trade.
All the best,
Brandon
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