Home / Knowledge / News / Textiles / Market trades lower
Market trades lower
18
Oct '08
The market held the low from yesterday and followed through with a strong limit up move which also traded synthetically higher. It does seem that the fundamental support under 50 cents has been effective in establishing a short term low.

The 3 year support line we bounced off yesterday seems like it will hold up at 45.50. Volume was better than average at almost 15,000 futures as well as 16,000 in options. The outside markets are still very important to holding this low and even though volatility is high, we may be ready to move higher.

Demand has been very strong over the last 2 weeks and we have found fundamental support for cotton even for shipments into the first quarter at fixed prices.

Export sales were very strong today at 400k and shipments of 240k. This trend will hold into next week as well since there was quite a bit of cotton sold this week. With all of the oversold signals, the markets seem to be putting in a bottom here, but there is plenty of uncertainty out there and this will not be changing any time soon.

Taking a look at the COT report on page 2 shows the trend of liquidation longs by the index and non-commercials continues to take place.

The U.S. economic picture became a bit brighter this week as the stock markets found some support and this may lead to a commodity consolidation. MACD is starting to turn north for the first time as we have reached heavily oversold signals which are due for a bounce.

Energy and grains also put in lows today but closed higher as the dollar came down on the close. There will certainly be plenty of volatility going forward as everyone agrees that we are not out of the woods yet, but we are seeing a small trend to buy dips instead of sell rallies as there is some demand to buy with volatility at all time highs.

Ecom USA

Must ReadView All

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Claudia Kersten
Global Organic Textile Standard

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silke Brand-Kirsch
Schlegel und Partner

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Jay Ramrakhiani
Occasions Elegance Wear

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search