December Cotton has been drifting in a sideways price consolidation over the past two weeks. The market formed a minor bullish reaction swing between 9/29 and 10/3. The reaction swing was confirmed on 10/4, when Cotton traded above the prior swing high. However, the breakout stalled when it hit stiff resistance at the confluence of resistance from the 20-day EMA and the downward sloping parallel line. This failed breakout bar was followed by an “inside” day, suggesting the reaction has failed and market reversal is pending.
Based on this price action I posted a sell recommendation in the latest issue of the TMV Swing Trade report. You can access this swing trade signal, as well as recommendation in other markets, at www.tradersnetwork.com.
By John Crane
December Cotton - click to enlarge
