Cotton MCX prices-Test of crucial resistance of 20500-20600 possibile before sliding
03 July 2017
We got stopped out in our last cotton position at 19850 however as shared in trail mail the cotton prices made a low of 19462 on a break of 19850 and reversed from there as we mentioned earlier that it will look to rebound from 19500-19600 levels even if 19850 breaks.As of now momentum indicators are showing an upward move towards retest of 20500-20600 levels which will act as a very strong resisitance and hence a good opportunity to initiate a sell position around those levels.As mentioned earlier the cotton prices has set into a medium term bearish outlook and its recommended to be on the sell side on upticks.
