Cotton Futures—Cotton futures in the March contract is currently trading slightly lower for the 2nd consecutive session down 10 points at 65.95 as I will be looking at a possible short position if prices break the 65.00 level while then placing the stop loss above the most recent high standing at 67.13 as the risk would be around $1,100 per contract plus slippage & commission.
Cotton prices are stuck in a 4-week tight consolidation as the volatility is extraordinarily low as the chart structure is excellent, however there’s absolutely no fundamental news to dictate short term price action as the demand for this commodity remains weak due to the fact of no trade agreement with China.
Cotton prices are trading right at their 20 day but still above its 100 day moving average as the trend is mixed to higher, but that situation would change if the 65 level would be broken so keep a close eye on this market as we could be involved in the next couple of days as the risk / reward is in your favor in my opinion.
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