Maintaining its 5 days rise (+$2.53), As the session continues, it seems to maintain one direction — after closing at $81.92 Friday, Cotton began today at $81.92 with significant bullish sentiment driving Cotton's price action higher. So far today, price action has drawn out a distinct $81.33 to $83.35 range.
Cotton made an initial breakout above its 50 day Simple Moving Average at $82.02, a potential indicator of a newly emerging bullish phase. Cotton formed a session range of $81.33 to $83.35 leaving buyers and sellers highly concentrated around an active Fibonacci resistance level of $82. ICE Cotton's lower Bollinger Band® is at $78.44, indicating that the market is oversold and fertile for new buyers. In contrast, although ICE Cotton is appreciating today after rising as high as $83.35, price action is now slowing and consolidating around 64 cents below the $82.88 resistance level.
Overall, looking at the technical analysis landscape, it seems ICE Cotton might continue pointing upwards in the short term.
Rallies can also be seen in other Softs, having closed the previous session at $2,475, Cocoa is up 1.62% today to currently trade at around $2,515. Sugar moves up 0.7% to trade around $20.23.
The market is looking forward to the release of new data: United States Building Permits (Nov) is scheduled for tomorrow at 13:30 UTC.
The commodity has been trending lower for about a month. The Cotton future traded as high as $154.89 before shedding 42.89% lower over the past six months.