Cotton (CT) is looking vulnerable to a daily close below upchannel support (on the daily chart), which after last week’s weekly Gravestone reversal from a 2022 high could create a Bearish Island Reversal (on the weekly chart). CT is also forming a monthly Gravestone with the 2022 high (earlier this month) having formed near the 61.8% Fib retrace of the slide from the record high (in 2011) to the 2020 bottom. Any weekly close below ascending wedge support (on the weekly chart) will dramatically increase the probability of a deeper slide in May sometime to the psychologically key 1.30 whole figure level or 61.8% Fib retrace of the Bull Market rally extension from early March to early May. Congratulations to readers who benefited from the increasing bullish momentum highlighted Aug 21st and from the warning on March 19th of a deeper slide. The still upsloping weekly MACD is weighed on by the tiring daily RSI, Stochastics and MACD. I am looking to enter long in the green zone (of the daily chart), targeting the red zone for Thursday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter). Click here for analysis on RAW SUGAR, GBPAUD
Sample of Today’s Top 3 Trades Available to Free Subscribers (published Apr 14, 2021)
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