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April 16, 2023
Friday at a glance: bearish sentiment ensured ICE Cotton finished Friday's session lower. However, despite the downward bias, ICE Cotton etched out a distinct $82.64 to $83.65 session range.
Cotton made an initial break below its 5 day Simple Moving Average at $82.9, a possible indication of a forthcoming negative trend. A Bearish Harami chart pattern, which is a means of predicting reversals in bull markets. When a Bearish Harami is detected at the top of a prevailing uptrend, it is typically considered a bearish signal and a prelude to a potential trend reversal. The Cotton future is currently flirting with an active Fibonacci support level around $82.92. Cotton's upper Bollinger Band® is at $84.89 which indicates a further downward move may follow. Despite this, ICE Cotton could begin to recover as it approaches significant support, now 45 cents away from $82.54. Dipping below could be an indication that further losses are ahead.
Following today's unexpected losses, extensive multifactorial technical analysis forecasts ICE Cotton to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the Cotton is expected to attract significant bearish sentiment in the coming days.
ICE Cotton's value drop coincided with the fact that Cocoa is down to $2,889, losing $26, after ending the previous session around $2,915. Coffee is down to $192.95, losing $1.45, after ending the previous session around $194.4.
Though ICE Cotton has been dropping, other Softs have been performing better: Sugar is trading around $23.49 after ending Friday's session at $23.39 (up 0.43% today).
Trading mostly sideways for 3 months. Having set a significant high of $154.89 11 months ago, Cotton is trading 46.29% lower.
