- Cotton broke round resistance level 70.00
- Likely to rise to 72.50
Cotton recently broke strongly above the round resistance level 70.00 (which reversed the previous minor waves (i) and (b)). The breakout of the resistance level 70.00 continues the active minor upward impulse sequence (iii) – which started earlier from the key support zone lying between the pivotal support level 68.00 (which has been reversing the price from the start of October) and the support trendline of the sharp daily up channel from May.
Given the strong uptrend that can be seen on the daily Cotton charts – the price can be expected to rise in the active impulse waves (iii) and 3 further toward the next resistance level 72.50 (top of the daily impulse wave 1 from the end of October). Strong support now is located at the support level 68.00 – which can be used to initiate longs on later downward corrections.