Commodity Chart Of The Day
A daily limit in cotton lifts prices to five-month highs, as prices are above their 38.2% Fibonacci level for the first time since mid-May. The 100 day MA was resistance for several weeks but with the assault above that pivot point yesterday, prices are now on the move, appreciating nearly 10% in the last four sessions. I expect to see a trade near 81 cents, and potentially as high as 85 in December futures, which would complete a 61.8% retracement. Moving forward, I will be looking for signs to sell into this strength …stay tuned.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.