ICE Cotton remains on-trend despite dull session

While Cotton is on a 7 day uptrend Today's session might suggest a slow down — ICE Cotton trades at $86.68 per pound, after ending yesterday at $86.66.

The Cotton future's state is reflected by market data as United States Existing Home Sales (Apr) released yesterday at 14:00 UTC with a figure of 4.28 million, while the previous figure was 4.43 million. United States Philadelphia Fed Manufacturing Index (May) came out at -10.4, while a consensus of analysts was expecting -19.8. United States Initial Jobless Claims came out at 242,000, better than analyst estimates of 254,000 and improving upon the previous reading of 264,000.

Trend and momentum analysis indicates that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Analysis based on the asset volatility indicates that ICE Cotton's upper Bollinger Band® is at $86.77, suggesting that a downward move may follow.

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

Moreover, United States Fed Chair Powell speech is expected today at 15:00 UTC.

The commodity has been trending positively for about 2 months. ICE Cotton has fallen back around 41.18% over the past a year, from a notable high of $147.32.