December cotton contract offers weak outlook : ECOM reports
05 Oct '06
2 min read
As mentioned yesterday the 9 month down trend channel has converged on the 2 month down trend channel, resulting a level of temporary support.
Today's session could mark a more prolonged correction / breather, but we see a lot of resistance above the market at the 50.80-51.50 area, and cannot see any break to the overall down trend right now.
Momentum is near oversold, and if anything gaining some support from this level. Otherwise trend following indicators (including averages and the MACD) are in bearish mode.
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