ICE December cotton futures prices on Tuesday hit a fresh 4.5-month low of 72.96 cents a pound. In five weeks’ time the cotton market has shed 6 cents (600 points) as prices are in a five-week-old downtrend on the daily bar chart and the bears have downside technical momentum. The next downside price objective for the cotton market bears is to push and close December futures below solid technical support at 72.50 cents. Below that lies chart support at 72.00 cents. For the weakened cotton market bulls to begin to regain some fresh upside near-term technical momentum to suggest that a near-term market bottom is in place, they will have to push and close December futures prices above strong chart resistance at 75.00 cents a pound. Below that price level does lie technical support at 74.00 cents and 74.50 cents. Stay tuned! Jim Wyckoff
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