Bullish phase under threat as ICE Cotton stays range-bound

On a 3 day uptrend, Thursday's session put the brakes on the ongoing uptrend — Cotton recovered back to $83.23 per pound after dipping down to $81.37, in a session that followed Wednesday's $83.2 close value.

Cotton's state is reflected by market data as United States Unemployment Rate beat analyst expectations of 3.6 and the previous reading of 3.6 with new data of 3.5. United States Non Farm Payrolls fell short of the 239,000 projections, with new data of 236,000. United States CFTC Crude Oil speculative net positions released yesterday at 20:30 UTC with a figure of 226,100, while the previous figure was 181,100.

A study of Cotton's chart reveals various key levels to watch: Cotton is climbing away and is now $2.61 from the $80.62 support line. Concerning technical analysis and more specifically, trend indicators, Cotton made an initial breakout above its 21 day Simple Moving Average at $82.93, a potential indicator of a newly emerging bullish phase. Analysis based on the asset volatility indicates that the Cotton future's upper Bollinger Band® is at $86.24, suggesting that a downward move may follow.

Overall, while the Cotton future has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.

Trading mostly sideways for 3 months. Having set a significant high of $154.89 11 months ago, Cotton is trading 46.28% lower.