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April 17, 2023
Stable at $83 and still trending upwards, Today's session might suggest a slow down — without a clear-cut direction, Cotton is trading around $83 per pound and ranging between $82.71 and $83.53.
Cotton's state is reflected by market data as United States NY Empire State Manufacturing Index (Apr) came out at 10.8, while a consensus of analysts was expecting -18.
Cotton made an initial break below its 5 day Simple Moving Average at $82.84, a possible indication of a forthcoming negative trend. Cotton's upper Bollinger Band® is at $84.92, suggesting that a downward move may follow. Despite this, the Cotton future is approaching key support, around 57 cents away from $82.43. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.
Despite the market lacking direction, technical chart analysis strongly suggests ICE Cotton is positioned for a downward move in the near term.
Meanwhile, mixed performances are seen in other Softs as Coffee is up 2.38%. Sugar gained 0.6% and is currently trading at $23.6.
Data to be released later is expected to clarify investor sentiment while boosting price action volatility as United States Building Permits (Mar) will be released tomorrow at 12:30 UTC.
Trading mostly sideways for 3 months. Cotton has fallen back around 46.46% from the significant high of $154.89 set 11 months ago.
