While from a technical perspective this is very negative, these technical rules change after a commodity has already had a long sustained move in one direction or the other.
Lumber has had a move from 313 to 226, so we can say the downside move has been extensive.
It is precisely at these times that we should be looking for lumber to reverse course and begin a major move in the opposite direction. The market may just be faking everybody out, trying to get all the traders short before it begins a move to the upside.
No position has been put into play as of yet, but it needs to be monitored as it could send its signal to buy at anytime.
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