As is the case with other commodities, China looms large in lumber’s equation. Moreover, China, which accounts for 20% of U.S. lumber exports, is also seeing higher demand as Beijing enacts stimulative measures to bolster growth.
As for CUT, “you can see that the impressive rally over the past couple of months has sent the price toward the combined resistance of its 200-day moving average and a major descending trendline. Technical traders would expect to see the price bounce off of these levels, and many will likely use the bearish crossover between the MACD and its signal line as confirmation. Bullish traders may want to remain on the sidelines until the price can close above $23.32 or $25.39 depending on their risk tolerance,” adds Investopedia.
Guggenheim Timber ETF
