Long July18 Cotton25 Apr 2018 Cotton #2 Ice
July18 CTN2018
Price fall of Apr24 points to immediate support at 81.10 then 80.70
This latter support is significant and failure here (Daily close below) will open next support at 79.70 (double bottom retest) and 77.70
If the double bottom retest gives way then price will probably move down to 74.40 (minimum) or more likely 73.90 support.
But that is only a maybe and is much further away from the current position.
Current area support 81.10 is reasonably substantial. So rejection longs could be entered in the rectangle with stops in the 80.30-80.20 area (rising dotted line). Upside is assumed to be slow and staircased with an ultimate short term move back to 85.00 area. This would then start projecting an ascending triangle with medium term (Dec18/Mar19) potential of 92+
Stops should rise in parallel with the upward sloping trend line. Any close below breech would signal exit all longs - not establish shorts, but a "hurry up and wait!" position, while new price pattern unfolds.
