USA: Cotton Markets Dip Again
Cotton fell below 70 cents today after a steady climb from the recent lows set back on May 1st at 68.52 c/lb. The market fell back below the 9-day moving average and the MACD is threatening to cross back down which would be very bearish. Overall, demand and good scale down buying can be found under 70 cents, but the…
Egytex News Desk
Egytex
Cotton market is still looking very fundamentally bearish as demand remains hand to mouth. The MACD has made a positive cross in the recent sessions, which is normally a buy signal. However, the movement suggested by the MACD cross needs support by decent trading volume coming from spec buying activities, which we have not been able to seen lately.
We first need to break that high set at 72.43 before we can pursue further upside targets heading towards significant resistance near 73/74 cents. Soybean and energy prices will continue to offer major influence on the cotton market in the short term as they are both holding firm with good technical buy signals.
Source: ECOMUSA Inc
From the Egytex news archive, first published on 15 May 2008. Figures and names are as reported at the time.
