Facts:
Cotton broke above the downward channel
The commodity invalidated 1:1 structure
Recommendation:
Trade: Long position on COTTON at market price
Target: 71.75, 73.40
Stop: 65.80
Opinion: Looking at the Cotton chart on D1 interval, it looks like there is a chance to recover from a recent downward move. According to the Overbalance methodology, the price broke above the upper limit of 1:1 structure, signalling a potential bullish reversal. In addition the price broke above the downard channel. Moreover the buyers managed to push the price above the 100-period moving average. Taking this into account we recommend going long Cotton at market price with two targets: 71.75, 73.40. We also recommend placing a stop loss order at 65.80. Source: xStation5
