Great trade b1s2. CT is one of the few commodities left which hasn't experienced a bull market during this 3 years. Good luck !
Nice close over 55 today. I will be holding this one as a position trade and hopefully it will remain profitable into the future. I don't pay attention to fundamentals as many of you know, but I do have one item to point out for this year. That is that I would imagine there would be cotton farmers who will switch to grains with the high prices and this could provide buoyancy to cotton futures with reduced acreage. I just have that in the back of mind, but in the front of mind, I have the bullish divergence on the daily chart and the break of 55 resistance, although not totally convincing just yet.
Just being patient here with this one. It isn't on fire yet, but I think a close over 56 now would fetch some more interest.
So what do you think? Am I a sitting duck here just waiting for my head to be handed to me or will I slowly be rewarded?
Price is sitting right above continuous weekly Trendline 4/29/05 & 2/24/06 & 8/11/06. If it holds and breaks away from 5500 you will be the Cotton King... =)
the upmove in CTH7 has slowed because market is testing the vertical area where the ease of downward movement in late September said supply overcame demand. now that prices are back in this area, the market will have to absorb thru the long liquidation (by those trapped earlier), profit-taking by those who bought Nov low, and new short selling. then we can push thru continuation trendlines, etc