The first time I tried a long in cotton futures was ard Dec/2014 and Jan/2015. I played a few bullish waves this year, and I made some money, but trade sizes were not too big. Why not? Because this commodity has become the most boring one! It is simply not trending. So you may ask why do I look at it from time to time? The reason is of course that once it makes a breakout, the move will be sharp, quick and massive!
Just look at the weekly chart how it used to behave! Compared to past, Cotton's volatility is extremely supressed. Not surprizing, as it has been trading around the 63 perfect equilibrium for more than 16 months now! Certanly it will be more interesting next year!
Weekly:
- Perfect equilibrium of 63 is reoeresented by thin Kumo lines ahead. Price has been trading in a slowly tightenning range since Aug/2014! Ichimou setup just could not be more neutral then this!
- EWO has built an extremely long term bullish divergence, right now stays around zero!
- Heikin Ashi is bullish
- Still multiple resistances above at 65 and 66
Daily:
- Ichimoku is bullish.
- Heikin-Ashi shows correction. Price should fins support around Kijun sen or Kumo (62,50-63,25 area) where selling should ease. You can look for buy signals in that range.
For now it is still a tick-tock buy the dips in small sizes. The game and the big long would come with a break above 65 and more above 66!
Just look at the weekly chart how it used to behave! Compared to past, Cotton's volatility is extremely supressed. Not surprizing, as it has been trading around the 63 perfect equilibrium for more than 16 months now! Certanly it will be more interesting next year!
Weekly:
- Perfect equilibrium of 63 is reoeresented by thin Kumo lines ahead. Price has been trading in a slowly tightenning range since Aug/2014! Ichimou setup just could not be more neutral then this!
- EWO has built an extremely long term bullish divergence, right now stays around zero!
- Heikin Ashi is bullish
- Still multiple resistances above at 65 and 66
Daily:
- Ichimoku is bullish.
- Heikin-Ashi shows correction. Price should fins support around Kijun sen or Kumo (62,50-63,25 area) where selling should ease. You can look for buy signals in that range.
For now it is still a tick-tock buy the dips in small sizes. The game and the big long would come with a break above 65 and more above 66!