Cotton stays consolidated

Cotton has been one of the many commodities that have been very volatile, but without taking a clear trend. On the daily chart of cotton we can see that the 55 and 200 exponential moving averages are “braiding”, indicating that there is no clear direction on the commodity and that price may take off in any direction. On this same chart we can see that cotton has found a good support on the 62.00 round number level and a good resistance on the 68.00 level. If the price breaks below the 62.00 level, then the 57.00 level could act as its next support. If the price breaks above the 68.00 level, then the 71.00 round number level could act as its next resistance.