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LEONES
Jun 17, 2014 8:14 PM

Cotton is oversold - bottoming Long

Description

I switched to the December2014 contract (CTZ14) because the July one is approaching expiry date. Here we have a different pattern. The price reached support today at 76.00. Oversold in the short and medium term. A trade above 77.55 would trigger the long entry with target objective 80.50, first resistance on the way. It could be a major bottom. A trade below 76.00 on the other hand would confirm the continuation of the bear trend.
Comments
EliteTrader101
getting close to the bottom, but for a longer term move i would like to see buyers take out some of the sellers stops, then wait for those buyers to get stopped out before jumping in with both feet on larger size. I guess a probe size is ok to get in on the long side for now.
LEONES
what do you mean by probe size
EliteTrader101
tiny size
LEONES
it think this is quite high probability trade but yes not going heavy here
LEONES
buy order is triggered but recent price action not convincing - I'm probably coming out if this trade with a small loss
EliteTrader101
to be safe i would have liked to see some of the seller's stops taken out first, then look for new lows to buy into
LEONES
wanted to reverse the order but now it's too late, it's just going lower
EliteTrader101
Try again tomorrow, it looks like it wants to go lower, but they triggered all the stops of the bulls so maybe a bounce coming, so be careful that its not a trap for sellers. If tomorrow reverses todays range, then it's a trap
LEONES
yes i agree but i don't think is a trap..
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