Cotton Futures—Cotton futures in the July contract is sharply higher this Tuesday afternoon in New York reversing a 2 day losing streak higher by 180 points or 3.27% at 56.81 as prices are near a 6 week high.
The crop progress report was released yesterday afternoon showing that 13% of the cotton crop has been planted while the state of Texas is at 18% which is right on schedule as the main reason for the rally is the optimism about the United States finally opening up the economy as the U.S stock market also continues to climb as there is light at the end of the tunnel in my opinion.
I have been recommending a bullish position over the last week or so from around the 55.50 level and if you took that trade continue to place to stop loss under the 10-day low standing around the 52.00 area, however the chart structure will not improve for another 6 trading sessions so you will have to accept the monetary risk at this time.
The volatility is starting to increase and it certainly will expand as weather will be the main dictator of price action in the coming months ahead as I still think we could touch the 60 level soon so stay long as the risk/reward remains in your favor to take a bullish position.
CHART STRUCTURE: SOLID
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