- Analytics
- Technical Analysis
Cotton Technical Analysis - Cotton Trading: 2021-06-11
Cotton Technical Analysis Summary
Above 88.17
Buy Stop
Below 86.29
Stop Loss
Indicator | Signal |
RSI | Sell |
MACD | Buy |
Donchian Channel | Buy |
MA(200) | Buy |
Fractals | Buy |
Parabolic SAR | Buy |
Cotton Chart Analysis
Cotton Technical Analysis
The #C-COTTON technical analysis of the price chart in 4-hour timeframe shows #C-COTTON,H4 is rising above the 200-period moving average MA(200) which has leveled off. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 88.17. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 86.29. After placing the pending order the stop loss is to be moved every day to the next fractal low indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (86.29) without reaching the order (88.17) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis of Commodities - Cotton
World cotton consumption was upgraded while ending stock was downgraded on Thursday. Will the cotton price advance continue?
The United States Department of Agriculture’s (USDA) June World Agricultural Supply and Demand Estimates report on Thursday projected 2021/22 lower world cotton beginning and ending stocks, production, and higher imports forecast. With world production projected 0.57 million bales lower, consumption projected 1.1 million bales higher and world trade projected 1.1 million bales higher than last month, the world ending stocks are estimated almost 1.7 million bales lower at 89.3 million bales. Higher demand and lower ending stocks are bullish for cotton price.
Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.