Home / Knowledge / News / Textiles / Market undergos huge pressure due to lack of technical support
Market undergos huge pressure due to lack of technical support
09
Jun '08
NY futures continued to slip this week, with July dropping another 134 points to close at 64.65 cents, while December fell 163 points to close at 73.01 cents.

The breach of important technical support invited more spec selling, which put the market under a lot of pressure throughout the week. After some damage was done on the daily chart over the last couple of months, the market was trying to hang on to a major uptrend line on the weekly chart, which ran through about 66.50 cents this week, but to no avail. The market clearly broke through this line of defense, which triggered a lot of spec selling that forced the market down to a low of 63.10 cents before rebounding slightly.

Speculators were clearly the driving force behind this selloff and there was again a lot of talk about the potential impact the CFTC investigation might have on spec long positions. Some prominent market commentators stated that a regulatory backlash against hedge funds could lead many of them to exit positions. However, we do not necessarily share this pessimism, because in the case of cotton these specs do not have that much of a long position left to liquidate.

According to the latest CFTC "Commitment of Traders" report, large speculators held just 45'000 contracts of outright longs, down from almost 99'000 contracts at the end of February.

Meanwhile, large outright spec shorts increased their position to almost 27'000 contracts, up by over 9'000 contracts in the week of May 20 - 27 alone and up by over 21'000 contracts since the end of February.

Must ReadView All

Textiles | On 25th May 2017

Huntsman and Clariant to have merger of equals

Huntsman Corporation and Clariant have announced that their boards of ...

Courtesy: CBRE

Apparel/Garments | On 25th May 2017

European cities preferred for retailer expansion: CBRE

European cities were the preferred new destination for international...

Apparel/Garments | On 25th May 2017

Guess records $458.6 million revenue for Q1 2018

For the first quarter of fiscal 2018, the net revenue of American...

Interviews View All

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search