Cotton MCX prices: 20000 target met, profit booked
21 June 2017
Early last week we advised to sell cotton at 20600-20700 levels for a target of 20000 ( new reader may scroll down to read previous report).We met our target on 15th june and booked our profit. As seen on the chart, break of 20600 trendline was very crucial as cotton prices have moved into medium term bearish outlook. While our medium term target is 18500 but in the near term a bounce back to 20500-20600 is likely before falling again , hence 20500-20600 will be a very good opportunity to sell again. At the current levels of 19990 we can look to buy cotton with strict stop loss at 19850 for first target of 20250 and if that breaks then towards 20500.If 19850 is broken on the downside the downward move may continue towards 19500-19600 before reversing.
Recommendation: Buy at current levels @19990 for target of 20250/20500 and SL at 19850
