Posted by Mike Seery
Cotton Futures---Cotton futures in the March contract are currently trading lower by 28 points at 81.40 this afternoon in New York after having a wild trading session last Friday off of the USDA crop report sending prices to a contract high of 84.65 only to settle lower for the trading session.
I have been recommending a bullish position from the 70.50 level & if you took the trade continue to place the stop loss at the 10 day low of 77.37 as the chart structure will also improve later this week as I have known marriages that haven't lasted as long as I've been in this market which seems forever, as I will continue to place the proper stop loss as I still think higher prices are ahead.
The U.S dollar hit a 3 year low in today's trade and that will start to support the agricultural markets which have been incredibly weak except for cotton as the U.S crop definitely was hurt by the West Texas freeze and the hurricanes that happened in 2017 as strong demand continues to push prices higher over the last several months.
Cotton prices are still trading far above their 20 and 100 day moving average as the trend remains strong, but for the bullish momentum to continue we have to break last Friday's high & if that does occur there's a possibility we could trade as high as 90 as who knows as picking a top is extremely dangerous and difficult to do so continue to move the stop up as the original stop loss was around the 68.50 level as it has been raised about 900 points over the last couple of months.
TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY---HIGH
Source: seeryfutures.com