Cotton Cash Contract - Rectangle Pattern

Commodity: Cotton Cash Contract

Introduction:

Hello everyone! Today, we'll be analyzing the Cotton Cash Contract on the daily scale traded on Pepperstone. After a clear downward trend, the contract seems to have entered a consolidation phase, possibly forming a rectangle pattern.

Analysis:

The rectangle pattern we're observing has been forming for around 196 days. The upper boundary of this pattern is approximately at $90, which has been tested three times so far. Meanwhile, the lower boundary is at around $77.50, with two touch points to date.

Currently, the price hasn't managed to cross above the 200 EMA. However, if we observe a breakout above the upper boundary, it would place the price above the 200 EMA, potentially paving the way for a long entry.

Upon a valid breakout, our projected price target would be $100.660, translating into a potential price rise of approximately 13%.

Conclusion:

The Cotton Cash Contract's technical analysis suggests a consolidation phase marked by a potential rectangle pattern. A breakout above the upper boundary might signal a shift to a bullish trend and could provide an opportunity for a long position.

As always, be sure to conduct your own research and risk management before investing.

Thank you for tuning into this analysis. Please like, share, and follow for more insights into the market. Happy trading!

Best regards,

Karim Subhieh