Cotton Futures—Cotton futures in the May contract is currently trading lower by 5 points at 84.63 in a very quiet trading session this Monday afternoon in New York looking for some fresh fundamental news to dictate short-term price action.
At the current time I’m not involved, however I’m looking at a possible bullish position in the coming days ahead as we are trading right at major support as prices topped out slightly above the 95 level on February 25th and has now dropped about a 1000 points over the last 3 weeks, however this market still remains in a longer-term secular bullish trend in my opinion.
Cotton prices are trading below their 20 day, but above their 100 day moving average as the trend is mixed at this time as spring planting is right around the bend as the volatility seasonably speaking will start to explode in the coming months ahead. I do not believe the 95 level will be the high as quantitative easing in the form of massive stimulus packages should continue to support prices over the long haul.
Prices my chop round over the next week as traders are awaiting the next crop report which will show estimated planted acres as that’s certainly an extremely important fundamental factor for prices going forward so keep a close eye on this market as I’m looking to be a buyer around the 82 level.
CHART STRUCTURE: SOLID
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