Lumber reaching to the lowest level since January

Technical Analysis

Price dipped below the March low at $776

The price of lumber has moved to the downside today and in the process is moving away from its 200 day moving average at $867.67 (green line in the chart below). It is also falling below the 61.8% retracement of the move up from the April 1 low at $817.60.  

The  low from early March at $776.10 has also just been broken with the price trading down to $774. That takes the price down to the lowest level since January 21.

Sellers keep the pressure on the price of lumber as housing seems to have reached a point of stall as result of higher mortgage rates and higher prices pricing buyers out of the market. That may relieve some of the demand pressure as supply catches up from the recent surge in buyer interest.
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