• Cotton reversed from resistance area
• Likely to fall to 78.00
Cotton continues to fall after the price reversed down from the resistance area surrounding the resistance level 82.00 (which has been reversing the price from the start of January) – strengthened by the upper daily Bollinger Band. The downward reversal from the resistance level 82.00 started the active short-term corrective wave 2 – which then broke the support trendline of the daily Rising Wedge chart pattern from the middle of December.
Considering the strength of the resistance level 82.00 – Cotton is expected to fall further toward the next support level 78.00 (low of the previous minor retracement (b) from the start of January) standing close to the 50% Fibonacci correction of the previous upward impulse wave 1.