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April 23, 2023While on a 4 day downtrend A slight improvement can be seen from Friday's session: without a clear direction, the Cotton future closed at $80.2 per pound while ranging between $79.7 and $81.05.
Trend-focused traders would be interested to note 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. Analysis based on the asset volatility indicates that ICE Cotton's upper Bollinger Band® is at $85.02 and the lower is $80.03. ICE Cotton chart analysis: the Cotton future is approaching key support, around 62 cents away from $79.58. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.
The current technical outlook indicates ICE Cotton will continue to ebb sideways within tight ranges for the immediate future.
Meanwhile, mixed performances are seen in other Softs as Sugar is down to $24.32, losing 42 cents, after ending the previous session around $24.74. Coffee is down to $191.55, losing $2.35, after ending the previous session around $193.9.
The commodity has been trending lower for about 3 months. The Cotton future is now trading 48.29% below the significant high of $154.89 it set around 11 months ago.
