Cotton Prices Look To Move Higher
Cotton Futures—Cotton futures in the December contract is trading higher by 87 points at 62.19 right near a 2 month high looking to break out of major resistance. I have been recommending a bullish position from around the 61.50 level as this trade has been very stubborn as I still believe higher prices are ahead and if you took the trade continue to place the stop loss under the contract low which was hit on August 26th at 56.59 as an exit strategy.
At the current time I have many bullish grain recommendations as I think cotton will start to follow as the crop progress report showed showed 77% of the bolls open in Texas (65% avg), with harvest at 25% complete.
Prices are trading above their 20 day but still slightly below their 100 day moving average standing at major resistance at 62.81 as that could possibly be broken in today’s trade so stay long and continue to place the proper stop loss.
The chart structure will improve in next week’s trade therefor the monetary risk will be lowered as the volatility remains low, but I don’t think that situation is going to last much longer. For the bullish momentum to continue prices have to break the September 13th high of 63.39 and if that situation occurs the next level of resistance is all the way at the 65 area.
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