Recommendation for Cotton: Buy
Buy Stop: Above 88.13
Stop Loss: Below 80.67
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Chart Analysis
The #C-COTTON technical analysis of the price chart in daily timeframe shows #C-COTTON,Daily is rising above the 200-day moving average MA(200) which is rising itself. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 88.31. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 80.67. After placing the pending order the stop loss is to be moved every day to the next fractal low indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (80.67) without reaching the order (88.31) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis
World cotton ending stock was downgraded on Tuesday. Will the cotton price advance continue? The United States Department of Agriculture’s (USDA) February World Agricultural Supply and Demand Estimates report on Tuesday contained 2020/21 higher world cotton production, consumption, and imports forecast. With world production projected 1.3 million bales higher, consumption projected 1.5 million bales higher and world trade projected 350,000 bales higher than last month, the world ending stocks are estimated almost 600,000 bales lower at 95.7 million bales, 3.2 million bales lower than in 2019/20. Higher deman
Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
Recommended Content
Editors’ Picks
AUD/USD holds firm above 0.6800 on risk appetite
AUD/USD holds mild gains above 0.6800 in Asian trading on Monday, snapping a two-day losing streak. The pair benefits from expectations of more Chinese stimulus, which lifting risk sentiment and weighs on the safe-haven US Dollar. The focus shifts to Fedspeak and RBA Minutes.
USD/JPY pulls back toward 148.00 after Japan's verbal intervention
USD/JPY retreats toward 148.00 in Monday's Asian session after hitting its highest since August 16. Japanese verbal intervention puts a fresh bid under the Yen, despite reduced bets for more BoJ rate hikes and a risk-on market mood. Fedspeak is next on tap.
Gold loses momentum to near $2,650 on renewed US dollar demand
Gold price trades in negative territory for the fourth consecutive day near $2,650 on Monday during the early Asian session. The further upside in the US Dollar after the upbeat US Nonfarm Payrolls on Friday exerts some selling pressure on the yellow metal.
Week ahead: What are the financial markets watching this week
Aside from geopolitical risk, this week’s macro drivers include the US CPI inflation report, the Federal Open Market Committee meeting minutes, and the Reserve Bank of New Zealand’s rate announcement.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.