There isnΆt much by way of “news” regarding cotton today. The outside markets were all negative for commodities in general. The DJIA, crude oil and gold futures were all lower while the dollar was higher. It doesnΆt get any worse than that for outside influence commodity trader attitudes towards ag commodities.
Notice how futures are moving further and further into the vortex of a sideways triangle on the December chart. Either the overhead resistance identified as “target one” will have to give way eventually, or the support offered by a critical uptrend line. Arguments can be made for either viewpoint; but neither is stronger or more convincing than the other. For that reason, I am content to watch this duel play out and just go with whichever technical resistance gives way first to determine if I should advise pricing more or buying some previous sales back. (The latter is VERY unlikely!)