Is it the end of Cotton's rally? After five days of gains, it is down by 0.55% today

ICE Cotton is down to $79.39 per pound, after ending Friday at $79.83. Overall, a 0.55% loss or 44 cents today.

Trend and momentum analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. According to asset volatility analysis, Bollinger Bands® shows an indication of recovery: the lower band is at $79.54, a low enough level to, generally, suggest that ICE Cotton is trading below its fair value.

All in all, the technical analysis suggests the Cotton future has no clear-cut direction.

Though ICE Cotton has been dropping, other Softs have been performing better: Sugar gained 0.45% and is now trading at $24.4.

Some optimism can drawn from the fact that United States Consumer Confidence is projected to outperform its last figure with 104. It previously stood at 102.3; data will be released tomorrow at 14:00 UTC.

Furthermore, United States Building Permits is expected tomorrow at 12:00 UTC. United States New Home Sales (May) scheduled to come out tomorrow at 14:00 UTC.

Trading mostly sideways for 3 months. The Cotton future reached a significant high of $122.25 around 10 months ago but has lost 34.7% since then.