This is Trading Week #3 (Jan 16-20) 2023.
Data from the past 10 years (2012-2022) shows that Cotton Futures was up 9 years (90%) of time.
Get ready to LONG on Monday!
Looking at the H4 chart, my overall bias for CT1! is bearish due to the current price being below the Ichimoku cloud, indicating a bearish market. Looking for a sell entry at 84.58, where the 23.6% Fibonacci line is. Stop loss will be at 87.97, where the 78.6% Fibonacci line is. Take profit will be at 79.78, where the 50% Fibonacci line and liquidity hotspots...
Title: Cotton Futures ( CT1! ), H4 Potential for Bullish Rise
Type: Bullish Rise
Resistance: 87.97
Pivot: 82.36
Support: 80.37
Preferred case: Looking at the H4 chart, my overall bias for CL1! is bullish due to the current price crossing above the Ichimoku cloud, indicating a bullish market. If this bullish momentum continues, expect price to continue heading...
The market made a nice impulse up on the daily, and the correction of this long impulse brought the market into a range.
A break from this range may take the price higher into correction or deeper in the direction of the primary trend, but I would take profit on the short trades at the start of the daily corrective impulse, and wait for a countertrend to target...
TODAY’S MARKET IDEA:
Cotton price looking bullish after breaking above 50 day moving average
Cotton vs US Dollar current price $88.25, both rate of change 4 and 13 day above zero line (bullish); MACD above its signal line (bullish) and the fact that current price is above both its respective 20 and 50 day moving averages indicate bullish technical...
COTTON is going south. There was a stop at a weekly technical zone, but it was broken badly, so I assume price is heading south towards the next weekly zone.
Trade safe! ⚪️⚫️
--------------------------------------------------------------------------------
ANYWAY, a lot of Qs about the direction of the price. But it doesn't matter.
WE JUST REACT!
Remember...
Hi✋🏽
Price has reached a weekly low from May '21, and buyers made it go 1-2 from the 1-2-3 wave. We are in the 3rd wave moving up, but price can easily go sideways for some time before breaking out of this zone.
The long and the short trigger zone marks the sideways channel.
What do you think???
Trade safe! ⚪️⚫️...
Cotton prices make a decisive break below an area of resistance turned to support, which dates back to February 2021. The move sets prices up for a test of the 90 psychological level as the Relative Strength Index (RSI) tracks deeper into oversold conditions.
Cotton prices have been very volatile in 2022. The three-month implied volatility on cotton is currently at 43.7% fast approaching the levels last seen in 2011. A pickup in volatility has historically been an important indicator of a change in trend.
Back in 2011, Texas (the biggest growing cotton state in the US) witnessed the driest year on record. The reason...
Because virtually the whole world is suffering from massive drought this summer, many crops are in bad shape. This is true with the U.S. cotton crop and it's also true with the U.S. corn crop, which according to USDA reports, barely half of is in good or excellent condition as of last week.
This is significant because the U.S. is the largest global producer...
According to USDA’s August forecast of the 2022 cotton crop, U.S. production is projected at 12.6 million bales, considerably below last season’s final estimate of 17.5 million bales and the lowest crop estimate in 13 years. Compared with 2021, cotton harvested area is also forecast significantly (31 percent) lower, but a higher national yield limits a further...
* The purpose of my graphic drawings is purely educational.
* None of what i write here is not an investment advice. Please do your own research before investing in any asset.
* Never take my personal opinions as investment advice, you may lose your money
The commodity has broken out long back and retested now, therefore may undergo a reversal rally. Trade is supported by Supports Nearby.
Risk Reward Ratio - 1.5:1
SL is placed below the support zone & the lower trendline. The target is placed near resistance.
July cotton futures collapsed on first notice day, which is generally a thin volume trade with no limits. This will be one for the books and a nice reminder that if you don't want to deal with delivery of futures, you should strongly consider rolling or flattening positions before first notice day.
