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March 01, 2023
Cotton is on an 8 day bullish run gaining $2.5 (3.64%). This session seems to remain in the same lane for now — overall, the Cotton future had a 0.56% move or 47 cents today and is currently trading at $84.66 per pound.
Nevertheless, Consumer Confidence in United States fell short of market expectations (108.5) with a reading of 102.9, continuing the decline from the previous figure of 106.
At the same time, United States API Weekly Crude Oil Stock came out at 6.20 million, while a consensus of analysts was expecting 440,000. United States Chicago PMI (Feb) released yesterday at 14:45 UTC with a figure of 43.6, while the previous figure was 44.3.
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. ICE Cotton's upper Bollinger Band® is at $86.86, this is a slight indication of a slowdown. ICE Cotton could be slowing down soon as it approaches resistance at $84.81. Of course, crossing it might suggest further gains are ahead.
After posting consistent gains as part of its uptrend and being lifted by intraday sentiment, technical factors suggest Cotton is set for a reversal in the coming days.
A look at other Softs also shows upside as Cocoa is up 1.56%.
Meanwhile, Sugar is down to $20, losing 29 cents, after closing at $20.29 in the preceding trading session.
Also worthy of note, today at 15:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to 457,000 from the preceding figure of 7.65 million. United States Initial Jobless Claims projected to come out at 195,000 — worse than previous data of 192,000; data will be released tomorrow at 13:30 UTC.
Elsewhere, United States ISM Manufacturing PMI (Feb) will be released today at 15:00 UTC.
The commodity has been trending lower for about 2 months. 9 months ago the Cotton future reached a significant high of $154.89 but has consequently lost 45.65% since then.
