Cotton prices have entered into a positive trend - Kedia Advisory
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MCX COTTON
As per the Daily chart, Cotton prices arrived in the zone where the uptrend was expected to start hitting a reading of RSI 54, the trend started moving toward upside and avoiding sell position and being bullish at this level. While as per the above chart, one of the technical patterns that looks extremely attractive for Cotton has been the ICHIMOKU pattern. As seen on the charts, the ‘Chikou Span’ (a line based on closing prices trailed backwards) has shown signs of coming out of the cloud pattern on the Daily timeframe. The Kijun sen had acted as a strong support zone for the Cotton, this also indicates that the Cotton could continue to move up higher, and with this recent ICHIMOKU cloud breakout the pace of rally, as well as the participation levels, could increase in the Cotton. The importance of this pattern on the Daily chart is that in many cases we have witnessed commodity's go into a strong bull run for coming days and not some short-lived trends. As per the Daily chart, we can see Cotton prices have entered into a positive trend, The trend looks positive ahead in the coming festive season. According to the above chart, if prices continue to hold and sustain above 30800 then the up trend will be valid for a short term target of 33500 and further extend to 35600 level also in the coming session. Support seen at 29600 and if it breaks below this price, then the trend will become negative.
Technical Chart
NCDEX COCUDAKL
As per the Daily chart, Cotton cake oil seed prices arrived in the zone where the uptrend was expected to start hitting a reading of RSI 71.45, the trend started moving toward upside and avoiding sell position and being bullish at this level. While as per the above chart, one of the technical patterns that looks extremely attractive for Cotton cake oil seed has been the ICHIMOKU pattern. As seen on the charts, the ‘Chikou Span’ (a line based on closing prices trailed backwards) has shown signs of coming out of the cloud pattern on the Daily timeframe. The Kijun sen had acted as a strong support zone for the Cotton cake oil seed, this also indicates that the Cotton cake oil seed could continue to move up higher, and with this recent ICHIMOKU cloud breakout the pace of rally, as well as the participation levels, could increase in the Cotton cake oil seed. The importance of this pattern on the Daily chart is that in many cases we have witnessed commodity's go into a strong bull run for coming days and not some short-lived trends. As per the Daily chart, we can see cotton cake oil seed prices have entered into a positive trend, The trend looks positive ahead in the coming festive season. According to the above chart, if prices continue to hold and sustain above 2850 then the up trend will be valid for a short term target to test 3000 and further extend to 3200 level also in the coming session. Support seen at 2580 and if it breaks below this price then the trend will become negative.
Technical Chart
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