Following an extended run off the early 2016 lows & most recent divergent high, WOOD (iShares S&P Global Timber & Forestry Index Fund ETF) is on watch for a potential short swing trade with an entry trigger & other specific trade parameters TBD. The white chart below is a 2½ year daily chart followed by a 2-year daily chart listing the potential (unadjusted) price targets & likely scenario for WOOD going forward.
Click on the first chart to expand, then click anywhere on right to advance to the next expanded image. Once expanded, charts can be panned & zoomed.
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- WOOD 2.5 year daily chart 3-22-18
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- WOOD 2 year daily March 22nd
Unlike the majority of commodity tracking ETFs & ETNs which hold futures contracts on the underlying commodity, WOOD & the related ETF, CUT (Guggenheim Timber ETF), do not hold futures, rather they seek to track the investment results of an index composed of global equities in or related to the timber and forestry industry. For those interested in a direct play on lumber prices, the chart of /LB (Random Length Lumber Futures) outlines my preferred scenario for lumber prices. I would only consider a short on WOOD or CUT if the charts of /LB confirmed that a correction was likely.
LB daily March 22nd