Cotton Futures--- Cotton futures in the December
contract are trading above their 20 but still below their 100 day moving
average trading in a 3 month channel settling last Friday in New York
at 63.00 currently trading at 64.80 up about 80 points for the trading
week with a possible head and shoulders bottom starting to be created on
the daily chart. There is major support in the December cotton at 61
and major resistance at 66 with large world supplies keeping a lid on
prices also due to the fact of a strong U.S dollar as harvest activity
will start to improve over the next several days in the southern part of
the United States bringing in a near record crop as I’m still sitting
on the sidelines in this market because the trend currently is mixed.
Cotton
prices have dropped over 2000 points from the summer highs and has now
been consolidating for the last 3 months so continue to look for a
breakout above 66 on the upside & below 61 on the downside but at
the current time look at another market with a stronger trend as choppy
markets are difficult to trade in my opinion.
TREND: MIXED –CHART STRUCTURE: EXCELLENT (more)
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