Lumber has been tracing a choppy pattern off its 2009 low. The advance could be an expanding diagonal pattern. Interestingly, momentum diminishes after the strong rally from the 2020 bottom. That’s a hint for a nearby reversal of the bullish trend. Moreover, the pattern is nearly complete. Another marginally higher could become an ending diagonal for the advance from November 2020. Nonetheless, behavioral factors show a bullish but not exuberant picture of market participants yet. However, that could change after another down-up sequence into this Summer. The bottom line is that a larger correction is probably coming for the commodity at some point during the next months.
