Recommendation for Cotton: Buy
Buy Stop : Above 62.84
Stop Loss : Below 58.46
| Indicator | Value | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(50) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Chart Analysis
On the daily timeframe #C-COTTON: D1 has breached above the 50-day moving average MA(50) which has leveled off. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 62.84. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 58.46. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (58.46) without reaching the order (62.84) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis
US cotton planting area was downgraded on Tuesday. Will the cotton price rebound continue?