The cotton market was in a steady up-trend for most of the first half of 2022 and broke down sharply from overbought levels. Since the low in mid-July, we have seen a nice rebound off an inverse head and shoulders pattern, and we have continued higher through some critical resistance levels. The market is now testing the 50-day and the 200-day moving average as supply concerns continue with the drought throughout Texas and is looking to breakout to the upside to break the longer-term downtrend from the May highs.