The Cotton future is down to $77.78 per pound, after ending yesterday at $79.16. Overall, a 1.74% loss or $1.38 today.
The Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Cotton has just crossed the lower Bollinger Band® at $78.47, indicating further losses could be forthcoming.
Overall, looking at the technical analysis landscape, it seems Cotton is likely to start pointing downward in the short term.
In the meantime, negative performances are also seen in other Softs as Coffee goes down 1.75% to trade around $176.9.
Though ICE Cotton has been dropping, other Softs have been performing better: having closed the previous session at $2,688, Cocoa is up 1.71% today to currently trade at around $2,734.
The commodity has been trending lower for about 2 months. 10 months ago Cotton reached a significant high of $154.89 but has consequently lost 48.89% since then.