Cotton Looking Rather BullishPosted 01/08/2020 2:30PM CT |
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.