Home / Knowledge / News / Textiles / Market is waiting for fund support
Market is waiting for fund support
27
Mar '08
We continue to see good selling resistance at 75 cents in K'08 which has kept a short term cap on the market which could extend through FND in options on April 11th. There is a large open interest in the K'08 75 calls that could explain the selling pressure when K'08 breaks this level.

We did get good put selling in the N'08 which allowed the market to rally early into good scale up selling, but as grains started to weaken and soybeans came off the limit, cotton fell back hard and only made back some of the correction on the close. All of this took place in very light volume with only 18,000 futures and 23,000 options.

We are not expecting any significant sales or shipments to show up this week and most traders are more anxious about the acreage report on Monday coming in higher or lower than 9.5 million acres. There is a range of guesses which mostly lean to the lower side as far as 8.5.

The conservative guess would be somewhere in the middle at 9.0 million acres which may not provide enough support to break through the 75 cent resistance and could lead to a retest of the lows. Demand remains weak and the market is waiting for fund support on the dips which does not seem to show up unless the spot month breaks 70 cents.

Technically, the RSI is near 45 and not showing oversold levels. If this market stalls and tries to come down, we will cross the 9 and 50 day moving averages which would be very bearish. This could lead to a technical sell signal and with growing cert stocks and falling open interest, we could break the long term upward trend channel just below 69 cents.

The dollar remains weak, but the hedge funds may take some more profits at the end of the quarter which is bearish. The commodity complex is cooling off right now but could have further downside before a rebound.

Click here to view more:

ECOM USA Inc


Must ReadView All

Courtesy: Fancycrave.com from Pexels

Apparel/Garments | On 22nd Jun 2018

EU's retaliatory duty on US apparel takes effect

As part of the three-pronged response outlined by the European...

NCC applauds House passage of farm legislation

Textiles | On 22nd Jun 2018

NCC applauds House passage of farm legislation

The National Cotton Council (NCC) of the US has welcomed the passage...

Courtesy: Roman Pohorecki from Pexels

Apparel/Garments | On 22nd Jun 2018

UK launches inquiry on sustainability of fashion industry

The Environmental Audit Committee of the UK Parliament has launched...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search