Cotton Need To Find BALANCE PositionCotton was very volatile recently due to the effect of many factors (Dollar Index, Crop condition, Demand from Down Stream).
In general, Cotton need to find a balance points before any new update in the market.
If you are spinner, it is better to wait the Cotton find a new consolidation / balance period.
It can be 92 - 95 or lower. We can not be sure about this. But at least, for spinning, this is not a good time for Buying.
COTTONCNDY Futures
COTTONCNDY1! trade ideas
Cotton Defending New SupportAfter the gap higher in Cotton last week, we have seen sustained price action out above that gap and is now acting as a strong support pocket going forward. This rally higher was led by weaker crop conditions with the ongoing drought in Texas, and the market is now in a tightening range. With the strong support pocket below and overhead trendline resistance, we could see the market breakout above this trendline resistance and climb higher is crop conditions continue to look poor. Downside risk comes if we see better weather conditions that will help the crop conditions and could take the market back below the gap.
Cotton Pushing Higher On Supply ConcernsThe cotton market was in a steady up-trend for most of the first half of 2022 and broke down sharply from overbought levels. Since the low in mid-July, we have seen a nice rebound off an inverse head and shoulders pattern, and we have continued higher through some critical resistance levels. The market is now testing the 50-day and the 200-day moving average as supply concerns continue with the drought throughout Texas and is looking to breakout to the upside to break the longer-term downtrend from the May highs.
IS THAT THE CONFIRMATION OF BUY??? "DOUBLE BOTTOM"According to D1 chart wanna leave some interesting opportunities that offer on cotton market. seems that "DOUBLE BOTTOM" at 88.50 around keep supporting??? at least for now. however i'm just took my place for two target as shown on chart. watch carefully those arrows and make your own decisiones. don't read just number on what i'm wrote take look at chart. Good Luck
cotton 12k$ gain/contract after a nice head and shoulder pattenit took only one week for cotton to fall 12k per contract
entry was either after a day with high percentR indicator value or simply in the 50-61.8 % rally zone.
entries on 2 hour chart where on new low with trailing the take profit stop at prior 2 hour bars high.
now lets see if prices will fall further to the 2022 opening at 93$
Cotton CollapseJuly 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.
Cotton: Head and Shoulders BreakdownSince the May 17th highs, we have seen December Cotton in a downtrend. Looking at the formation of a head and shoulders pattern, there was a breakdown below support at 117.96, and prices have continued to grind lower. With the market currently right near the 200-day moving average, and the RSI indicating we are in oversold territory, there could be a nice rebound to the upside if we can hold this level. If the market breaks below the 200-day moving average, which has not happened since before the pandemic, there could see added selling until a new floor is established.