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Cotton Technical Analysis - Cotton Trading: 2023-03-29
Cotton Technical Analysis Summary
Above 82,2
Buy Stop
Below 72,2
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Sell |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
Cotton Chart Analysis
Cotton Technical Analysis
On the daily timeframe, COTTON: D1 has gone up from the short-term rising channel and is moving towards the upper border of the neutral range. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if COTTON: D1 rises above its most recent high of 82.2. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal, the last down fractal and the lower Bollinger band: 72.2. After opening a pending order, we 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 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 (72.2) without activating the order (82.2), 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
In the USA, the area of cotton cultivation and its crop yield may decrease. Will COTTON quotes go up?
The United States Department of Agriculture (USDA) forecasts the 2022/2023 cotton planting area in the United States to be 3.01 million hectares. According to preliminary estimates, this is 27.6% less than in the previous season 2021/2022. Cotton production in the US may decrease by 16.3% to 4.04 million tons. Note that according to the USDA, world cotton production this season may increase due to a good harvest in China, Australia and some other, smaller producing countries. Theoretically, a reduction in the US cotton crop could support quotes. The US is the world's largest cotton exporter and accounts for just over 30% of global exports. Brazil is in 2nd place (19.4%) and Australia is in 3rd place (15.4%).
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