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Cotton Prices Are Trending Up. How Much Higher Can They Go?![]() December cotton futures (CTZ25) present a buying opportunity on more price strength. See on the daily bar chart for December cotton futures that prices are trending higher. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture as the red MACD line is above the blue trigger line and both lines are trending higher. The cotton bulls have the overall near-term technical advantage. Fundamentally, record highs in the major U.S. stock indexes this week have American consumers in upbeat moods heading into the fall apparel-purchasing season. China’s economy is also showing better growth signs for the major cotton importer. U.S. trade deals with other countries are also starting to fall into place, which is easing trader and investor uncertainty, and that’s friendly for the cotton market. A move in December cotton futures above solid chart resistance at the June high of 69.52 cents would give the bulls more power and it would also become a buying opportunity. The upside price objective would be 75.00 cents, or above. Technical support, for which to place a protective sell stop just below, is located at the July low of 67.13 cents. ![]() IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature. Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. |
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