Cotton Technical Analysis | Cotton Trading: 2018-10-15 | IFCM
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Cotton Technical Analysis - Cotton Trading: 2018-10-15

The hurricane can damage crops

The hurricane Michael can damage US crops. Will the cotton pricecontinue rising?

The U.S. Department of Agriculture (USDA) in its weekly report showed that export sales were up on 208,400 running bales. The U.S. National Hurricane Center (NHC) said that hurricane Michael was a Category 4 storm on the five-step Saffir-Simpson hurricane scale. The Michael will could be a one of the most powerful hurricanes in U.S. history.

COTTON

On the daily timeframe,Cotton: D1 broke up the resistance line of the falling trend. The further price growth is possible in case of worsening weather conditions and reduction of a world harvest.

The bullish momentum may develop in case Cotton exceeds the last fractal highs: 80. This level may serve as an entry point. The initial stop loss may be placed below the 2 last fractal lows, the low since December 2017 and the Parabolic signal at 76. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level (76) without reaching the order (80), we recommend to close the position: the market sustains internal changes that were not taken into account.

Summary of technical analysis

PositionBuy
Buy stopAbove 80
Stop lossBelow 76

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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