Cotton Breaks Bearish Trend
Cotton has been in a nice uptrend since the lows back in June, and although we have seen some chop recently, we are still trading in this wedge with defined support and resistance. Looking more at the technical side, Cotton broke out of a bearish trend on September 28th, and is looking strong as we are entering Q4.
Old Resistance, new support:
Looking at this chart, there was strong overhead resistance from the January high, and when the market started trying to take out that level, we saw sellers’ step in and bring the market back down. The market broke back out above this level on September 25th, and now this level will act as support that bulls will want to defend to keep process moving higher. This also lines up nicely with the strong trendline support, and a break below this level could send us back to neutral territory.
Overhead Resistance:
As this market is trending higher, there is still prices that need to be achieved to make the next leg higher. There is strong overhead technical resistance going back to the May ’22 highs, and this level has been tested and sold into three times. If the support pocket can hold, the re-test of this resistance point will be critical in judging the prices moving forward. Another rejection here could spark additional selling which could break the trend to the downside.
Check out CME Group real-time data plans available on TradingView here: tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Old Resistance, new support:
Looking at this chart, there was strong overhead resistance from the January high, and when the market started trying to take out that level, we saw sellers’ step in and bring the market back down. The market broke back out above this level on September 25th, and now this level will act as support that bulls will want to defend to keep process moving higher. This also lines up nicely with the strong trendline support, and a break below this level could send us back to neutral territory.
Overhead Resistance:
As this market is trending higher, there is still prices that need to be achieved to make the next leg higher. There is strong overhead technical resistance going back to the May ’22 highs, and this level has been tested and sold into three times. If the support pocket can hold, the re-test of this resistance point will be critical in judging the prices moving forward. Another rejection here could spark additional selling which could break the trend to the downside.
Check out CME Group real-time data plans available on TradingView here: tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
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