On the
daily chart of cotton we can see that the commodity has been oscillating in a
well-defined range between the 200 day exponential moving average, blue line,
as support, around the 62.10 and the high around the 66.34 as resistance. After
the recent pullback to the upside, we see that the price of cotton goes back
down. It looks like the price wants to visit again the 200 day EMA. If the
price breaks below the 200 day EMA, then its next support could be the 60.00 or
the 57.00 in the longer-term. To the upside, the 66.34 could continue acting as
resistance.
Thank you for the analysis.
ReplyDeleteWell spotted! I'll keep it in mind.
ReplyDeleteConsidering the mentioned range, there is space for further decline.
ReplyDeleteThat's good to know, thanks.
ReplyDeleteVery helpful assessment.
ReplyDeleteQuite precise defined levels!
ReplyDeleteExcellent analysis, thank you!
ReplyDeleteInformative article!
ReplyDeleteGood analysis.
ReplyDelete