Considering the natural correlation between housing starts and lumber prices, one might expect July's housing start surge to cause the commodity price to move upward.
That's not necessarily the case, according to investor education website Investopedia.
Using stock charts for market leaders Weyerhaeuser and Plum Creek Timber Co. Inc., the article on Investopedia argues that lumber prices and lumber-related stocks have dipped below key levels of resistance. All told, the analysis means prices are predicted to continue moving downward.
When market leaders experience downward pressure, the effect often trickles down to smaller companies in the market as well.
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