• Cotton broke major resistance level 116.16
• Likely to rise to resistance level 120.00
Cotton continues to rise after the price broke the major resistance level 116.16 – which stopped the previous sharp upward impulse wave (3) at the start of October. The breakout of this resistance level accelerated the active short-term impulse waves (iii) and 3, both of which belong to the higher order upward impulse sequence (5) from the start of October.
Given the sharp daily uptrend and the rising rise sentiment as seen across the global commodities markets, Cotton can be expected to rise further toward the next resistance level 120.00 (target price for the completion of the active short-term impulse wave (iii)).