• Cotton broke resistance area
• Likely to rise to resistance level 90.00
Cotton continues to rise inside the minor impulse waves (iii) and iii – both of which belong to the impulse wave 5 of the multi-month upward impulse sequence (3) from the end of July (as can be seen from the daily cotton chart below). The price earlier broke the resistance area lying between the key resistance 86.80 (top of the previous impulse wave (i)) and the resistance trendline of the daily up channel from the end of December.
Given the prevailing uptrend and improved risk sentiment across the commodities markets today on hopes mass vaccination will soon lead to lifting of lockdowns globally – Cotton can be expected to rise further toward the next round resistance level 90.00 (target price for the completion of the active impulse wave (iii)).