Cotton Technical Analysis – Cotton Trading: 2022-02-28

 Cotton Technical Analysis – Cotton Trading: 2022-02-28

Cotton Technical Analysis.

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 Sell Stop։ Below 115

Stop Loss: Above 127

IndicatorSignal
RSISell
MACDSell
MA(200)Neutral
FractalsSell
Parabolic SARSell
Bollinger BandsNeutral

Cotton Chart Analysis

Cotton Technical Analysis

On the daily timeframe, COTTON: D1 approached the support line of the long-term uptrend. It must also be broken down before opening a position. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if COTTON: D1 falls below the lower Bollinger Band and its most recent low at 115. This level can be used as an entry point. The initial risk limit is possible above the last 3 upper fractals, the upper Bollinger band and the Parabolic signal: 127. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal high. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (127) without activating the order (115), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Commodities – Cotton

The United States Department of Agriculture (USDA) raised its forecast for planting and harvesting US cotton this year. Will the COTTON quotes continue to fall?

According to the USDA Agricultural Outlook Forum, US cotton plantings in 2022 will amount to 12.7 million acres. At the same time, the cotton harvest may reach 18.2 million bales, and not 17.6 million bales as in the previous estimate. Previously, the National Cotton Council’s 41st Annual Early Season Planting Intentions Survey estimated planting area at 12 million acres. Note that the emerging growth of the US dollar index may become a negative factor for most commodities.

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