CT1! trade ideas
Cotton in demand?
Cotton is a member of the Soft Commodities sector and is one of the more volatile commodities in its group. Weather conditions in producing countries, along with supply and demand are the main drivers behind the volatility. Since the coronavirus pandemic, demand has evaporated as factories and outlets cease to work and the ongoing feud between the U.S. and China isn’t helping matters for the lightweight fibre.
As the US Dollar continues to show signs of further weakening, we could expect to see commodities such as Cotton consolidate around these current levels or perhaps rise for the medium term. As of today, the Cotton index is currently trading at 63.84 per pound.
According to last week’s Commitment of Traders (COT) data. Large speculators reduced their bullish exposure from the previous week by -4,797 contracts totalling 42,055 contracts, short positions totalled 18,340 contracts a reduction of -668 contracts from the week starting on the 21 July ‘20
Commercial hedgers are currently short 102,907 contracts a change of -4,653 contracts from the week prior, 1,309 contracts were added to their bullish exposure this week totalling 25,386 contracts.
Non-Reportables (aka small participants) are holding 15,703 contracts long and 3,460 short, an increase of 363 contracts from the week prior.
What happens at (1) could pave the way for the short-medium term.
Cotton neutral - weekly short and daily long trend still validPrice is currently in a no trade area, price is trapped by the buyers and the sellers. Long and short zones are indicated as well as target zones. What do you think?
High probability for Cotton to hit 85 (Long Term)This is my thoughts about CT1! for the short and the long term
Analyse COTTON : Hight probability to go short Two possible scenario for cotton. If we break the 59.60 we could go back to the 62.80 but if we break the 55.10 is this is the scenario with a high probability, we will go straight to the 42.40 see even the 34
SELL CTThe price will be pushed back by the value area (BLUE ZONE) ; as soon as the big players get in, it will explose very high even above 77.04 !!!
be ready. pay attention to the volume.
CottonLack of volume to break-up the 50% Fibonacci retracement at $58.6 implies a high probability for prices to go lower.
CT1see that the cotton has reached the fibo level 0.5 but it could not have broken it.
So if the price breaks strongly with the 0.38 level there will be a probability of going for the 0.23 fibo level.
on the other hand if the price does not break the level 0.38 there will be a probability of visiting another time the level 0.5 or more.
if you liked this idea or have your opinion on it, write in the comments.
Cotton forcastingUsing pitchfork for me cotton can take to 57.35(increase). but we make attention because we are anti-trend. Next days can tell us everything about cotton. if you have any idea we can discuss.
Extra Cotton Anyone?I think cotton is going up. A steep run down then back up. I call that a V-shaped bottom...thats a good chart pattern to buy into. Have a good one guys.
Cotton Futures/Wait for a pull back and buyWe hit the bottom of the channel. I will open a long position if the price pulls back. The risk to reward:5-6
