Full steam ahead for Cotton as 8 days uptrend continues

Cotton continues an 8 day surge, reaping a total of 9.04%. Today's session so far looks to be heading in the same direction — after closing the previous trading day at $86.72, the Cotton future is up to $86.87 per pound, which makes for a move of 0.17%/15 cents today.

Concerning technical analysis and more specifically, trend indicators, investors are seeking long positions as Cotton price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at $87.44, thereby suggesting that ICE Cotton is becoming overvalued.

Notwithstanding Cotton's appreciation in recent days, the technical outlook suggests its bullish run is now fading.

Meanwhile, Coffee is down to $190.7, losing $1.3, after closing at $192 in the preceding trading session.

Furthermore, the market is looking at United States New Home Sales (Apr) is scheduled for tomorrow at 14:00 UTC. United States Services PMI is expected tomorrow at 13:45 UTC. United States Building Permits is expected tomorrow at 12:00 UTC.

The commodity has been trending positively for about 2 months. ICE Cotton is now trading 40.85% below the significant high of $146.62 it set around 11 months ago.