The Commodity Specialist view – Earlier this year the game looked as though it was up for Cotton bulls, but fresh interest created new highs. A temporary halt has now been made, within a projection area that we had identified in the Commodity Specialist Guide, but can this develop into something more bearish?
- WEEKLY CHART – CONTINUATION:
A recent bull surge breached the long term 76.4% recovery level, but has found resistance near to a Fibo projection we have been showing in the Commodity Specialist Guide, at 85.00.
This projection is related to the fact that the early Feb low lies close to the current 38.2% pullback.
First interesting support here comes from the higher 73.10 23.6% level. - DAILY CHART – MAY-10:
The recent upsurge faltered just through rising resistance, and also close to a 84.00 Fibo projection (1.6178 swing off prior 77.83-67.80 pullback) – also noting the 85.00 level on the Weekly chart.
Initial reaction here has been negative. First support from the 77.83 high is so far holding, with a break below to provide a modest negative sign.
More important support lays some way off at present, a s/term channel base projection around 72.00, closing in on the 23.6% level from the Weekly chart.
Note possible resistance from a very s/term 76.4% bounce level at 83.20 (not shown).
There is currently downside risk, but we must wait to see if this develops into something more serious.
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