CE July cotton futures are presently in a six-week-old uptrend on the daily bar chart, from the March low of 42.22 cents a pound. Prices this week hit a fresh six-week high of 51.89 cents. The cotton bulls this week gained fresh upside near-term technical momentum when prices on Tuesday posted a big and bullish “outside day” up on the daily bar chart–whereby the high was higher and the low was lower than the previous session’s trading range, with a higher close.
click the chart to enlarge
The next upside price objective for the cotton market bulls is to push and close July futures above strong overhead technical resistance at the January high of 53.10 cents. A close above that key chart level would open the door to much more upside price potential. Just below that price level does lie technical resistance at this week’s high of 51.89 cents. There is solid technical support for July cotton futures located at the 48.50-cent area. A close below that price level would deflate the bulls and suggest that a near-term market top is in place. Stay tuned! Jim Wyckoff
***Jim Wyckoff’s Trading Workshop*** I am conducting a small-group trading workshop in May. This is a rare opportunity for you to obtain individual attention and “hands on” experience to improve upon your own trading skills. Click here for more details: Jim Wyckoff’s Trading Workshop Or, call me at 1-319-277-8643 if you have any questions.–Jim