Interviews
Cotton regains interest of commodity funds & money managers
04 May '09
4 min read
However, that policy has now painted many into a corner waiting on a market dip of any substance. Cotton prices have trended up over 1400 points since early March without a meaningful correction. Of particular interest are the lop-sided unfixed positions against the July contract where potential buying outnumbers potential selling to fix prices by a 5 to 1 ratio.
Technically, the combination of extreme over-bought readings and almost irrational market performance make it difficult to predict either upside targets or support levels with any confidence. For the last three weeks any early weakness has proven to be the opportunity to buy the market.
While by one measurement, the market should run into first technical resistance at 5720; just above Friday's highs, confidence is low concerning this point. Upside targets of 6175 to 6400 look feasible but not after a correction. There is minor support at 5310 followed by a plethora of possible support points between 5180 and 4980.
Technically, the combination of extreme over-bought readings and almost irrational market performance make it difficult to predict either upside targets or support levels with any confidence. For the last three weeks any early weakness has proven to be the opportunity to buy the market.
While by one measurement, the market should run into first technical resistance at 5720; just above Friday's highs, confidence is low concerning this point. Upside targets of 6175 to 6400 look feasible but not after a correction. There is minor support at 5310 followed by a plethora of possible support points between 5180 and 4980.
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