How Low Are Cotton Prices Going ?

Cotton Futures--- Cotton futures in the December contract are trading lower for the 6th consecutive trading session as I recommended a short position around the 71.85 level and if you took that trade place the stop loss above the 10 day high which now stands at 73.19 as the chart structure is poor due to the fact that prices have absolutely collapsed over the last week.

The next major level of support is right at the 69 level and if that is broken I think we could head down to the 66 level very quickly as 12.2 million acres planted in the southern part of the United States is just too many in my opinion coupled with the fact that China has massive reserves which they continue to sell onto the world market.

The July contract has absolutely collapsed over the last several weeks dropping over 1300 points which is putting pressure on the December crop which is the new crop and currently being grown as prices are trading far below their 20 and 100 day moving average is this trend still has further run to run in my opinion.

The chart structure will not improve for another 5 trading days so your going to have to accept the monetary risk at this time as I'm looking at adding more contracts on any type of price rally.TREND: LOWER –CHART STRUCTURE: POOR

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