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Cotton Technical Analysis - Cotton Trading: 2021-07-14
Cotton Technical Analysis Summary
Above 88.8
Buy Stop
Below 81.3
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Neutral |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Buy |
| Bollinger Bands | Buy |
Cotton Chart Analysis
Cotton Technical Analysis
On the daily timeframe, Cotton: D1 moved up out of the triangle. A number of technical analysis indicators have formed signals for further growth. We do not exclude a bullish movement if Cotton rises above the last fractal upper and upper Bollinger band: 88.8. This level can be used as an entry point. Initial risk limitation is possible below the Parabolic signal, the 200-day moving average and the lower Bollinger line: 81.3. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit / loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (81.3) without activating the order (88.8), 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) reported a decline in US cotton plantings. Will the Cotton quotes continue to rise?
According to the USDA, the US cotton planted area in 2021 was 11.72 million acres. This is 3% less than in 2020. The forecast for US cotton exports in the 2021/2022 season has been increased by 400,000 bales to 15.2 million bales. The slowdown in cotton sowing in India due to the lack of precipitation may become a positive factor for quotations. According to the Indian Ministry of Agriculture & Farmers' Welfare, cotton has now been planted on an area of 8.6 million hectares. This is 18.5% lower than last year's level of 10.5 million hectares on the same date. As of July 7, precipitation in India was 46% below average. Earlier, the USDA predicted that global cotton consumption in the 2021/2022 season will increase by 3.5% to 122 million bales and exceed the pre-covid level of the 2018/2019 season. At the same time, global consumption will still be below the historically maximum level of 2017/2018. The main increase in cotton consumption may occur in the world's clothing-producing countries: India, Bangladesh, Turkey, Pakistan and Vietnam.
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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.
