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April 03, 2023
While Cotton is in the midst of a 4 day up trend, Bucking the trend and turning lower, ICE Cotton remains range-bound within a $82.19 to $83.95 range but falls to $82.31 per pound in choppy trade.
ICE Cotton is currently trading at $82.31 following the release of ISM Manufacturing PMI (Mar) data from the United States.
Meanwhile, United States ISM Manufacturing PMI (Mar) released today at 14:00 UTC with a figure of 46.3, while the previous figure was 47.7. United States ISM Manufacturing Employment (Mar) came out at 46.9, while a consensus of analysts was expecting 50. United States ISM Manufacturing Prices (Mar) released today at 14:00 UTC with a figure of 49.2, while the previous figure was 51.3.
Trend and momentum analysis indicates that Cotton made an initial break below its 21 day Simple Moving Average at $83, a possible indication of a forthcoming negative trend. ICE Cotton is currently flirting with an active Fibonacci support level around $82.92. Analysis based on the asset volatility indicates that Cotton's lower Bollinger Band® is at $79.43, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. Following today's trading session, chart analysis suggests Cotton could begin to recover as it approaches significant support, now 4 cents away from $82.27. Dipping below could be an indication that further losses are ahead.
Overall, while Cotton has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
In the meantime, negative performances are also seen in other Softs as Cocoa dips 2.52% to trade around $2,859.
Positive performances can be seen by looking at other Softs markets as Coffee is up 3.57%.
Furthermore, United States JOLTs Job Openings (Feb) will be released tomorrow at 14:00 UTC.
Trading mostly sideways for 3 months. The Cotton future has fallen back around 46.56% from the significant high of $154.89 set 10 months ago.
