• 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

New York cotton futures ended lower on Friday pressured trade selling and deliveries in the July contract. Expectations of huge buying by the top consumer China will continue to underpin prices. Markets will be looking at the start of deliveries in the July contract on Monday and then look toward release of the annual plantings report of the US Agriculture Department.

As we have been mentioning in the previous updates, 46-47 cents levels will offer good support for a retest of 57-58 cents in the week's to come. Prices have broken out of the range in which it has been moving for the past two years. Support will now be quite strong at the 56-57 cents range and as long 55 cents holds attempts to decline, a retest of 70 cents seen in 2004 is on the cards. Initial resistance will at 65 cents. RSI is in the overbought zone indicating a correction to take place in the coming week. The averages, in MACD are above the zero line indicating a bullish reversal. Only a crossover of the averages below the zero line again will now indicate bearishness. Prices are above the short-term 8-day period and 21-day period EMA at 56.45 cents and 53.21 cents respectively indicating bullishness again. Therefore, look for cotton futures to correct lower initially and then rise higher subsequently.

Supports are at 58.25, 57.50 and 56 cents. Resistances are at 62.10, 64.50 and 65.75 cents respectively.

(The author is the Director of Commtrendz Research and also in the advisory panel of 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.)

Gnanasekar. T

More Stories on : Technical Analysis | Cotton

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

Stories in this Section
Royal Classic donates land to TNAU

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