- Cotton reversed from key resistance level 72.50
- Likely to fall to 69,15
Cotton continues to fall after the price reversed down with the daily Japanese candlesticks reversal pattern Bearish Engulfing from the key resistance level 72.50 (which stopped the previous sharp upward impulse wave 1 at the end of October) – strengthened by the upper daily Bollinger Band. The downward reversal form the resistance level 72.50 created the daily Japanese candlestick reversal pattern Bearish Engulfing – highlighted below.
Given the strength of the resistance level 72,200 and the bearish divergence on the daily Stochastic indicator – Cotton is likely to fall down further toward the next support level 69,15 (interesting with the support trendline of the daily up channel from May).