The Cotton future breaks a 7 day downtrend, ascends to $80.36

While Cotton was in the midst of a 7 day downtrend— in which it lost a total of 4.4%— A possible change of direction spotted from yesterday; Cotton closed yesterday at $80.36 per pound (with a daily low of $79.6) after ending Thursday at $79.62 and gaining 0.93%.

Meanwhile, United States CFTC Crude Oil speculative net positions released yesterday at 20:30 UTC with a figure of 216,600, while the previous figure was 214,800. United States CFTC Gold speculative net positions came out at 195,800. United States CFTC Nasdaq 100 speculative net positions released yesterday at 20:30 UTC with a figure of 21,400, while the previous figure was 13,300.

Yesterday's price action generated a Japanese candlestick pattern showing a "hammer” chart pattern. When appearing during a bearish trend, as it is now, it is typically considered to be an indication of a trend reversal. Technical analysis trend indicators suggest that Cotton made an initial breakout above its 21 day Simple Moving Average at $81.14, a potential indicator of a newly emerging bullish phase. ICE Cotton is currently trading around the $81.11 Fibonacci resistance level. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at $83.67, thereby suggesting that Cotton is becoming overvalued. Technical analysis of the Cotton future's past price action reveals multiple support and resistance levels: ICE Cotton reversed direction at $81.55 resistance zone and retreated back $1.19 below it.

With market volatility ebbing, the current technical outlook indicates Cotton will remain range-bound for the immediate future.

Rallies can also be seen in other Softs, Sugar is trading around $26.2 after ending yesterday's session at $26 (up 0.69% today).

Meanwhile, after ending yesterday's session at $3,003, Cocoa lost $26 and is trading around $2,977.

The commodity has been trending lower for about 4 months. ICE Cotton is now trading 47.15% below the significant high of $150.65 it set around 11 months ago.