Cotton Futures—Cotton futures in the March contract is trading slightly lower for the 4th consecutive session down another 10 points at 64.70 as the volatility is extraordinarily low for such a historically volatile commodity.
The crop progress report showed that 83% of the U.S crop has been harvested which is right on schedule & should be wrapped up in a couple of weeks as demand has been the main problem for these depressed prices as it looks like we will not have a trade agreement with China as President Trump stated today that he might wait until after the 2020 election which would be a negative influence on prices.
I have been recommending a bearish position from around the 65.00 level and if you took that trade continue to place the stop loss at 67.13 as I will be looking at lowering that stop in next week’s trade therefor the monetary risk will also be reduced.
As I have stated in previous blogs I do believe that a rounding chart pattern has formed as that is a bearish technical indicator that predicts lower prices ahead so stay short as I do think volatility will come back soon.
CHART STRUCTURE: EXCELLENT
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