While on a 3 day downtrend, dropping a total of 5.18%, More of the same today: Cotton is down to $81.75 per pound, after ending yesterday at $82.04. Overall, a 0.35% loss or 29 cents today.
On the flip side, positive data for ICE Cotton released earlier when United States Initial Jobless Claims beat analyst expectations of 215,000 and the previous reading of 206,000 with new data of 205,000.
Meanwhile, United States Consumer Price Index released yesterday at 13:30 UTC with a figure of -0.1%, while the previous figure was 0.1%. United States Core Consumer Prices came out at 0.3%, while a consensus of analysts was expecting 0.3%.
Trend-following investors would be interested to note that the MACD index is indicating that momentum is shifting from bullish to bearish following a negative crossover. When the MACD falls below the signal line, it is typically considered to be a bearish development favoring short positions. Analysis based on the asset volatility indicates that Cotton's lower Bollinger Band® is at $80.1, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Overall, the technical outlook suggests Cotton is likely to remain muted for the immediate future, with no clear-cut direction.
Though the Cotton future has been dropping, other Softs have been performing better: Cocoa moves up 0.98% to trade around $2,666.
Approximately 8 months ago, the Cotton future reached a significant high of $154.89 but has struggled to hold onto its gains and declined 47.03% since then.