Interviews
Contrary to opinion cotton likely to be bullish
06 Apr '09
4 min read
The short term 9-10 day moving averages crossed above the intermediate 20-21 day moving averages a couple of weeks ago This buy signal was reinforced this last week when the short term average crossed above the 40 day for the first time since early February.
Very near term upside resistance should be found between 4750 to 4850, either before or just after the market consolidates and dips a bit to relieve an overbought condition. Generally speaking, look for buying to try and hold dips to no more than 50 percent from any one point. What had been resistance around 4580 should now be considered first support followed by 4500-4480.
I am reminded that our market rallied ten cents in the month following the December Supply/Demand report without near the somewhat improved outlook we have today. However, sooner or later we have to deal with the overly abundant supply of cotton globally, limited demand and more than likely loan forfeitures.
Very near term upside resistance should be found between 4750 to 4850, either before or just after the market consolidates and dips a bit to relieve an overbought condition. Generally speaking, look for buying to try and hold dips to no more than 50 percent from any one point. What had been resistance around 4580 should now be considered first support followed by 4500-4480.
I am reminded that our market rallied ten cents in the month following the December Supply/Demand report without near the somewhat improved outlook we have today. However, sooner or later we have to deal with the overly abundant supply of cotton globally, limited demand and more than likely loan forfeitures.
Swiss Financial Services
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