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.
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...
D1 bullish gartley
H4 head and shoulders
H4 upside breakout-retracement to downtrend
A period of low volatility now - which will likely precede a period of high volatility, which will cause a breakout to the upside or downside