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Cotton Technical Analysis - Cotton Trading: 2020-07-03
Cotton Technical Analysis Summary
Above 62.84
Buy Stop
Below 58.46
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Buy |
| Donchian Channel | Buy |
| MA(50) | Buy |
| Fractals | Buy |
| Parabolic SAR | Buy |
Cotton Chart Analysis
Cotton Technical Analysis
On the daily timeframe #C-COTTON: D1 has breached above the 50-day moving average MA(50) which has leveled off. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 62.84. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 58.46. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (58.46) without reaching the order (62.84) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis of Commodities - Cotton
US cotton planting area was downgraded on Tuesday. Will the cotton price rebound continue?
The United States Department of Agriculture’s (USDA) June acreage report on Tuesday showed a planted area estimate of 12.2 million acres for all cotton in 2020, down 11% from last year. And traders are closely watching for weather updates as Texas, the highest cotton-producing state, continues to be hot and dry. Lower supply estimates are bullish for cotton price. On the other hand improving weather in US cotton growing states is a downside risk for cotton.
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