COT Based Opportunities: Cotton Is Coming Towards Support from 2009
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I expected Cotton to change the direction last week, but this did not happen. There was another impulsive move downside. I guess bulls are waiting for stronger support to pump their money into this market. $57 is a price, where we made a double bottom in 2009 and have never seen the level again since then. It is possible to get through, but it is very unlikely there will not be any reaction. It will be either reversal or an area of the next bulls stand.
You can watch my ideas also on Tradingview: https://www.tradingview.com/chart/CT1!/mSFddxaI-Cotton-s-COT-on-Maximum-Levels-as-It-Approaches-2009-Support/
Based on the impulsive moves you are showing, there is still downside risk, look for a pullback before the next leg lower.
There certainly is. Cotton landed on the mentioned support just after market's opening. I will watch the gap but will probraly restrain myself from trading it. I hear the trading war is most likely behind the movement. Cheers!