RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

March 20 Cotton hammered down like many markets under the threat of war after the news reported Iranian missiles launched at bases housing US military personnel. After the threat of response was alleviated it seems many bulls instead of stepping to the sidelines saw an opportunity to buy into what they may consider to be an undervalued commodity. Its typically a very strong bullish indicator when charts take out previous lows and close positive, even more bullish when closing at the top of the trading range. Its interesting to note prices are just below a resistance point, if Mar 20 cotton can close above 70.30 I think the next target could easily be 72.00. Its not all bullish though, there are still plenty of cotton ending stocks in the US and globally which may weigh heavily on this economically sensitive market if good news dries up. This market has been in a strong upward trend though and is supported by great demand; if we have a bullish USDA report and/or the Phase 1 deal with China is signed, I think there could be a lot more upside potential.

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Eric Scoles

Market Strategist
Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.
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