While in the midst of a 6 day downtrend Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. Currently trading at $83.35 per pound, ICE Cotton remains range-bound between $82.8 and $83.75.
At the same time, United States NY Empire State Manufacturing Index (Oct) came out at -9.1, while a consensus of analysts was expecting -4.
Cotton made an initial breakout above its 3 day Simple Moving Average at $83.91, a potential indicator of a newly emerging bullish phase. The Cotton future's lower Bollinger band is at $80.71, indicating that the market is oversold and fertile for new buyers. Despite this, ICE Cotton could be slowing down soon as it approaches resistance at $84.18. Of course, crossing it might suggest further gains are ahead.
Cotton continues to move higher with technical analysis indicating the trend will continue in the short term.
Though the Cotton future is going up, other Softs are underperforming — Cocoa is down to $2,320, losing $20, after closing at $2,340 in the preceding trading session. Sugar is trading around $18.7 (down 7 cents).
Also worthy of note, United States Crude Oil Inventories expected to decline to 1.55 million while its preceding data was 9.88 million, data will be available tomorrow at 14:30 UTC.
Furthermore, the market is looking at United States Building Permits (Sep) will be released tomorrow at 12:30 UTC.
The Cotton future reached a significant high of $154.89 around 5 months ago but has lost 46.36% since then.