Cotton Futures--- Cotton futures are starting out the new year up 10 points at 78.73 right near a contract high which was touched last week as I still remain bullish this commodity as I remain bullish many commodity sectors now that 2018 is upon us.
Strong demand for cotton continues to push prices up as I have been recommending a bullish position over the last couple of months from around the 70.50 level & if you took the trade the stop loss now has been raised to 74.95 as that will also be raised in 3 trading sessions as the chart structure will start to improve later this week therefore lowering the monetary risk.
As I have talked about in many previous blogs I thought cotton prices could trade in the low 80s and I still believe that could happen as strong demand for this fiber continues to push prices higher coupled with the fact that the hurricanes did have an impact on U.S quality and the frost that developed in West Texas also hurt yields so this has a lot of bullish fundamental factors to push prices even higher in my opinion.
Cotton prices are trading far above their 20 and 100 day moving average telling you that the trend clearly is the upside as the main reason for the original recommendation was the fact that we broke out of a 9 week consolidation as the original risk I believe was around $1,000 dollars per contract plus slippage & commission so stay long.
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