ICE Cotton breaks a 3 day downtrend, moves up to $84.18

While Cotton was in the midst of a 3 day downtrend— in which it lost a total of 1.95%— A possible change of direction spotted from yesterday; the Cotton future went up to $84.18 per pound yesterday, gaining 0.56%.

At the same time, United States ISM Non-Manufacturing PMI (Feb) came out at 55.1, while a consensus of analysts was expecting 54.5. United States CFTC Crude Oil speculative net positions released yesterday at 20:30 UTC with a figure of 224,200, while the previous figure was 243,800. United States CFTC Gold speculative net positions released yesterday at 20:30 UTC with a figure of 128,800, while the previous figure was 160,300.

Analysis of Cotton's recent price action suggests Cotton price action is currently oscillating around the $84.26 resistance level with prices moving above and below several times during the session. Trend analysis indicates that the Cotton future made an initial breakout above its 50 day Simple Moving Average at $84.48, a potential indicator of a newly emerging bullish phase. Yesterday's price action generated a Japanese candlestick pattern showing a "hammer” chart pattern. When appearing during a bearish trend, as it is now, it is typically considered to be an indication of a trend reversal. Price action remains constrained around the key Fibonacci level of $84 currently serving as resistance According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $86.79, thereby suggesting that ICE Cotton is becoming overvalued.

Overall, the technical outlook suggests ICE Cotton is likely to remain muted for the immediate future, with no clear-cut direction.

Rallies can also be seen in other Softs, Sugar soars 3.05% yesterday and closed at $20.31.

At the same time, after ending yesterday's session at $182.2, Coffee lost $4 and is trading around $178.2.

Trading mostly sideways for 2 months. Approximately 9 months ago, the Cotton future reached a significant high of $154.89 but has struggled to hold onto its gains and declined 45.96% since then.