Technically today was something of a breakout for the May contract, as it was finally able to rise above the funk of the heavy overhead resistance at 54.00. Funds were large buyers on the breakout and will look to support this level on any pullback as well. Resistance was as expected at the 50 day moving average at 54.57, however the close above the breakout level is encouraging.
There have not been any short term breakouts materialize in cotton for over a year now, so we are loathe to get excited over this one, but will expect to see some follow through support over the next few sessions.
marketing@alchempro.com
