Kumowizard
Long

Cotton - Still consolidating, but bottoms are bought

ICEUSA:CTH2015   Cotton #2
35 0 1
Please check the original idea on the link below. I have changed the futures contract on the chart from the "second continous" to the March/2015 contract, to get more precise technical picture.

In last 2,5 weeks cotton             has been trading in a range, but it looks like all dips are bought with increasing turnover. The turnover is probably also increasing as the dec/14 contract maturity is getting closer and players swap positions to the next closest March/2015 futures .
I checked net speculative mkt positionning, and that is extremely short on Cotton             , so probably this slow dip buying is already some smart short covering.

Technical details:
- Price is in a bearish trend , but trendline is very close, also Price is about to enter the Cloud
- Especially last three candles suggest the bearish price action could be soon over. We had a higher low three days ago with a close above Kijun Sen. This means some short term bullish bias developing
- DMI-ADX tells us only this mkt is consolidating, not trending. The bearish trend ran out of steam by the end of October.
- All Ichimoku lines are very close to each other and to Price. This is so far a consolidation, but Chikou Span crossed above Price candles, Kijun Sen and Senkou A started to point up (these are signals of slight bullish bias within consolidation)
- MACD has a positive divergence, Slow Stoch again turning up
- The level to be watched: 63,40-63,75! Whenever Price breaks the trend and strikes above Kumo, that can be a start of a bullish trend reversal.

The entry strategy is still the same, trade on the break! Expected Risk/Reward is ard 3,25
When the break hapens, don't hesitate, as this product is really a fast moving one.
Ideas Scripts Chart
United States
United Kingdom
India
España
France
Italia
Polska
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out