• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Gnanasekar T.

New York cotton futures ended higher on Friday on speculative buying fuelled by strong export sales figures. Fibre contracts rallied higher this week helped by robust export numbers and rise across the board on all commodities.

A rally in other commodity markets such as grains and base metals also helped bolster sentiment in fibres.

Net upland sales of US cotton for the latest reporting week stood at 3,78,900 running bales, 27 per cent above the week earlier and 60 per cent higher than the prior 4-week average, the US Department of Agriculture said on Friday.

The active May contract rose higher in line with our expectations.

Near-term resistance will be seen at 54 cents and only a break above resistance at 55-55.20 cents will trigger a sharp rise to 58 cents, followed by the psychological resistance at 60 cents.

As long as 51.30 cents holds any attempts to decline, we see a bullish market ahead for fibre contracts.

In the big picture, Elliot wave analysis still points to a corrective pattern in progress and a break above 60.52 cents will give rise to a new impulse.

RSI is in the neutral zone indicating that it is neither overbought nor oversold.

The averages, in MACD are below the zero line in the indicator suggesting bearishness.

Only a cross-over of the averages above the zero line again will now indicate bullish reversal again.

Current prices are below the short-term average of 8-day EMA at 52.93 cents indicating short-term bearishness and the 34-day EMA is at 53.44 cents. Therefore, look for cotton futures to test the resistance levels in the coming week.

Supports are at 52.95, 51.65 and 50.25 cents.

Resistances at 54.05, 55.10 and 56.50 cents respectively.

(The author is Director of Commtrendz Research and also in the advisory panel of the Multi Commodity Exchange of India Ltd (MCX). The views expressed in this column are his own and not that of MCX. This analysis is based on the historical price movements and there is risk of loss in trading. He can be reached at gnanasekar_thiagarajan@yahoo.com.)

More Stories on : Technical Analysis | Cotton

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Brand image for grapes

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line