Well, we can try, as current level we can place a relatively tight stop loss under our long position, but even if you buy it, do not allocate one full trade unit to this position at the start.
Weekly:
- Ichimoku setup is neutral to bearish: Price is still below 100 WMA and the Kumo, but above Kijun Sen. Kumo is very thick above price. Tenkan/Kijun is weak bullish and Chikou Span is above past candles. Lower supp/res lvl is ard 62,75 +/-. In fact until Price trades in the 62,50-70 area we can call it neutral on the weekly chart. Below 62,50 it would be bearish again. Above 70 it would be bullish biased.
- Heikin Ashi signal is bearish, so even if we try to catch a bottom betting that Price holds above Kijun Sen, we must be very cautious with position sizing.
Daily:
- Ichimoku setup is neutral with some bearish bias. It would turn bullish only above 65,25, and more above 66. Price is flirting with the bullish trend line, the question is if the trendline holds same as it did in mid March?
- Heikin Ashi setup is bearish, with slightly decreasing short term (3 days) bearish momentum.
If you enter long you have to use a relatively tight stop somewhere between 62,60-62,90. The upside of the trade is hard to tell, but 1:2 risk reward is not impossible. I give it a try, but I will stick to small size and tight stop loss this time.
p.s.: yesterday after US opening we saw some agressive buying in cotton, sending price quickly upto 64,60. To be honest I don't know if it was short covering or some new bullish flow enterring mkt, but after the buyer was done, price action quickly faded. I really wonder how it will go today?
Weekly:
- Ichimoku setup is neutral to bearish: Price is still below 100 WMA and the Kumo, but above Kijun Sen. Kumo is very thick above price. Tenkan/Kijun is weak bullish and Chikou Span is above past candles. Lower supp/res lvl is ard 62,75 +/-. In fact until Price trades in the 62,50-70 area we can call it neutral on the weekly chart. Below 62,50 it would be bearish again. Above 70 it would be bullish biased.
- Heikin Ashi signal is bearish, so even if we try to catch a bottom betting that Price holds above Kijun Sen, we must be very cautious with position sizing.
Daily:
- Ichimoku setup is neutral with some bearish bias. It would turn bullish only above 65,25, and more above 66. Price is flirting with the bullish trend line, the question is if the trendline holds same as it did in mid March?
- Heikin Ashi setup is bearish, with slightly decreasing short term (3 days) bearish momentum.
If you enter long you have to use a relatively tight stop somewhere between 62,60-62,90. The upside of the trade is hard to tell, but 1:2 risk reward is not impossible. I give it a try, but I will stick to small size and tight stop loss this time.
p.s.: yesterday after US opening we saw some agressive buying in cotton, sending price quickly upto 64,60. To be honest I don't know if it was short covering or some new bullish flow enterring mkt, but after the buyer was done, price action quickly faded. I really wonder how it will go today?