The lumber market is an ever-evolving industry, with various factors impacting its performance. While some of these factors may be unpredictable, others follow cyclical and seasonal patterns that traders and investors can use to their advantage. In this article, we’ll take a closer look at the cycle forecast and seasonal chart for lumber, to help you make informed decisions about your investments.
Cycle Forecast for Lumber
The weekly chart for lumber shows a promising cycle, but it didn’t perform as expected in its last period. One reason for this could be the discrepancy with the annual cycle, which reaches its low point in October. This discrepancy highlights the importance of considering both the cyclical and seasonal patterns when making investment decisions.
Seasonal Chart for Lumber
The seasonal chart for lumber clearly displays a seasonal pattern. In October, the market experiences a cyclical low, which provides a potential entry opportunity for traders and investors. In the past, the correlations between the seasonal and annual cycles were high, but they disappeared in the mid-2010s for a few years. Nevertheless, it is important to keep an eye on this seasonal trend as it can still offer valuable insights.
Forecast for Lumber
When looking at the chart that superimposes the cyclical and seasonal trends for lumber, we can see some interesting entry opportunities. These opportunities arise in mid-December 2022 and October 2023. By keeping a close eye on the market and considering both the cyclical and seasonal patterns, you can make well-informed investment decisions and potentially capitalize on these entry opportunities.