- Cotton broke key resistance level 73.40
- Likely to rise to 76.40
Cotton continues to rise inside the accelerated impulse wave 5, which previously broke above the key resistance level 73.42 (former monthly high from November which stopped the previous sharp upward impulse wave 3, as can be seen below). The active impulse wave 3 is a part of the medium-term extended upward impulse sequence (3) from the end of July.
Given the predominant uptrend that can be seen on the daily cotton charts and the resumption of the risk on sentiment across the global commodity markets – Cotton is expected to rise further toward the next resistance level 76.40 (target price for the completion of the active impulse wave 5 intersecting with the daily up channel from May).