Cotton Prices Unchanged For The Trading Week

Cotton Prices Unchanged For The Trading Week
Cotton Prices Unchanged For The Trading Week

Cotton Futures—Cotton futures in the March contract is currently trading at 65.38 after settling last Friday in New York at 65.36 basically unchanged for the week.  I’ve been recommending a bearish position from the 65.00 level and if you took that trade continue to place the stop loss above the 10 day high which now stands at 66.14 on a hard basis only as an exit strategy as the chart structure is outstanding due to the fact of the very low volatility that we are currently experiencing.

Cotton prices are still trading under their 20 day but above their 100 day moving average which stands at the 63.00 level, however for the bearish momentum to continue prices have to break the November 21st low of 63.70 as we await some fresh fundamental news to dictate short-term price action.

At the current time I also have a bullish sugar recommendation out of the soft commodity sector which continues its bullish momentum, but I still believe that a rounding top chart pattern has developed in cotton which is a negative technical indicator for lower prices ahead. This market has been stuck in the mud over the last several weeks as I will not 2nd guess as I will continue to place the proper stop loss as the risk/reward is still in your favor.

TREND: LOWER 

CHART STRUCTURE: EXCELLENT

VOLATILITY: LOW

 

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

 

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