Funds Return to Buy Cotton Futures

Funds Return to Buy Cotton Futures

Pro Farmer Senior Market Analyst Rich Posson says funds recently returned to the buy side following improved basis, suggesting cash traders viewed the decline into a Level 2 business cycle low as overdone. "We now need to see rising open interest as prices rally to show new longs were created," he says. "The five-week stochastic is long from a buy signal made in recent weeks and the indicator is not yet overbought. The forecast is that demand is on the rise from a Level 2 low into a Level 1 peak due in May."

In the July cotton futures chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:


Once a week, Pro Farmer VIP Members have access to Pro Farmer's Tech Talk, compiled by Posson, who is a certified market technician. Click here to learn more about the service and click here to become a Pro Farmer Member.


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