Cotton Forming A Base And Is Ready To Go

This has so far been the year for agricultural commodities. If you’ve been in this space and stayed away from the US stock market, you’ve been doing great. Good for you. But either way, I think Cotton is worth taking a look at. This nice long base we’ve seen Cotton build over the last few years could be the catalyst to take this much higher. Some of it’s colleagues like Coffee, for example, have been on fire. I think this one can join the party.
The first chart shows a nice big base developing over the past few years. After an asset crashes like Cotton did in 2011, the only medicine is time (i.e. Tech after 2000). This base is exactly what was needed:

Now with those key resistance levels in mind, let’s call it 94-ish, take a look at this daily line chart. This is where we’ve been running into trouble for some time. But as always, the more times that a level is tested, the higher the likelihood that it breaks. This is the 4th test in a little over a year and 5th since 2012.  (more)
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