We are nearing a price level, that served as the groundwork for the double bottom pattern and strong rally above. The price hasn't even come close anytime since. On top of that, August is seasonally good for cotton. Yes, we might break. And yes, the downward moves are very impulsive (red arrows), whereas upward moves look somehow ill and weak. But I think, this level should at least become another stop in the downtrend if not reversal. Opening long and moving stop loss in the profit zone as soon as possible will likely ensure good profit chances.
Comment
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If you watch the idea, you know there was a morning gap that took us right to the resistance. This gap is going to be filled and according to my analysis, the next direction is unclear. I recommend closing your longs.
Trade closed: target reached
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Done. Next development is unclear. I hope everyone has a nice profit on the gap filling.