Cotton market is still looking very fundamentally bearish as demand remains hand to mouth. The MACD has made a positive cross in the recent sessions, which is normally a buy signal. However, the movement suggested by the MACD cross needs support by decent trading volume coming from spec buying activities, which we have not been able to seen lately .We first need to break that high set at 72.43 before we can pursue further upside targets heading towards significant resistance near 73/74 cents. Soybean and energy prices will continue to offer major influence on the cotton market in the short term as they are both holding firm with good technical buy signals.Source: ECOMUSA Inc
Date:5/15/2008
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