Subscribe to RSS

Forex Technical Analysis #C-COTTON : 22 January 2016

Cotton outlook uncertain

China’s imports of cotton fell in 2015 as country’s growth slowed. Cotton imports of world’s biggest cotton consumer are expected to fall in 2015-16. Will cotton fall with expected decline of import demand?

Chinese cotton imports in December were 188,200 tonnes, down 29% year on year. Demand from the world’s largest cotton consumer remains depressed as China’s economic growth slows down and Beijing granted less low-tariff import quotas in order to boost consumption of domestic supplies. Total imports in 2015 were 1.48 million tonnes, at lowest level in nine years. Domestic prices fell earlier this month to levels close to import prices on expectations that Beijing was preparing to auction off more of its estimated 11m tonnes of inventories. This may result in lower imports. The US Department of Agriculture estimates Chinese imports for 2015-16 at 1.2 million tonnes, down from 1.8 million in the prior crop year. While expected lower imports from China will negatively impact the demand for cotton, a 10% planned cut in Uzbekistan’s cotton output over the next five years should provide support for cotton prices. Uzbekistan is the world’s fifth biggest cotton producer, and plans to cut production 0.5m tonnes to 3.0m tonnes by 2020 as irrigated lands will be used for more vegetable farming.

AUDUSD

On the daily timeframe the Cotton: D1 has been trading within an uptrend channel for the last three months. The price is edging up along the lower channel and the Parabolic indicator has formed a buy signal. The width of Bollinger bands hasn’t changed in the last couple of weeks, which indicates steady volatility. The RSI oscillator is rising towards the 50 level. The MACD indicator is below the signal line, but the gap with the signal line is falling and the signal line is edging up. This is a bullish signal. We believe the closing above the fractal high at 62.98 will signify the continuation of bullish momentum. A pending order to buy can be placed above that level. The stop loss can be placed below the fractal low at 61.29, confirmed also by the lower channel and Parabolic signals. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop loss level at 61.29 without reaching the order, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Position Buy
Buy stop above 62.98
Stop loss below 61.29

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

$25 Free Forex Welcome Gift to Start Trading – TRADE

$25 Free Forex Welcome Gift to Start Trading – TRADE(0)

Sign up and receive $25 Free Forex Welcome Gift to Start Forex Trading. $25 Free Forex Welcome Gift by TRADE.com to trade forex live trading without any Deposit and investment to verify live account Link:  $25 Free Welcome Gift to Start Trading Available to: All new trading account Bonus offer: Sign up and receive $25

Stay Informed About Crucial BREXIT News – UFX Broker

Stay Informed About Crucial BREXIT News – UFX Broker(0)

How will BREXIT affect the value of the GBP? Could the EUR be affected, as well? Other European markets may see volatile market reactions as investors wonder how the UK may profit from its own market, rather than remain part of the EU’s single market. Stay Informed About Crucial BREXIT News with UFX Link:  Stay

Up to 444% Profit Receive for a Single Trade – Grand Capital

Up to 444% Profit Receive for a Single Trade – Grand Capital(0)

Up to 444% Receive Profit with our new Express Options for Grand Capital Ltd Binary Option Broker. Make a correct prediction for 3 assets at the same time Link: Up to 444% Profit Receive for a single trade Link:  $500 Forex No Deposit Welcome Bonus Link:  40% Forex Welcome Deposit Bonus Available to: All new

$6000 First Deposit Bonus Limited Time Offer – XTrade

$6000 First Deposit Bonus Limited Time Offer – XTrade(0)

Up to $6000 First Deposit Bonus Limited Time Offer (T&C applied) on all Deposits for all Customers. Become an XTrade customer, and get 60% Forex Special bonuses (T&C applied) on all deposits made during your first 7 days!! Link:  $50 Free Cash Welcome Bonus Promotion  (T&C applied) Link:  $30 Free Account Verification Bonus (T&C applied) Link: 

50% Deposit Bonus and $50 No Deposit Bonus – FortFs

50% Deposit Bonus and $50 No Deposit Bonus – FortFs(0)

$50 Forex No Deposit Bonus Promo Action to all eligible clients. Every client who passed the verification process in their trader’s room can get the $50 No Deposit Welcome Bonus Link:  $50 Forex No Deposit Welcome Bonus Link:  Up to 50% Bonus of Every Deposit Link:  15% Support Margin Bonus Promo Available to: New and

15% Forex Welcome Deposit Bonus Up to $1000 – XM

15% Forex Welcome Deposit Bonus Up to $1000 – XM(0)

15% Forex Welcome Deposit Bonus Up to $1000 and $30 Forex No Deposit Bonus Welcome Bonus brings Real Account clients the best rewards available. Entering the markets and trading with XM enables you to earn from your trades and build your own bonus up to a maximum of $1,000. Link:  $30 Forex No Deposit Bonus

Free $200 Earn with Binary No Deposit Bonus – Ayrex

Free $200 Earn with Binary No Deposit Bonus – Ayrex(0)

Earn $200 Free with Binary Options No Deposit Bonus to all new activated trading account. Ayrex presents its very first Binary Options No Deposit Bonus for new traders. Sign up to get FREE $30 and turn them into a fully withdrawable $200! Link: $200 Earn with No Deposit Bonus Link:  $100 Free Win in Just One

$30 Free No Deposit Welcome Bonus Campaign – Tickmill

$30 Free No Deposit Welcome Bonus Campaign – Tickmill(0)

$30 Free No Deposit Welcome Bonus Campaign to All new traders. $30 Free Welcome Account is available to all new clients who expressed a wish for it during the registration process. Link:  $30 Free Welcome Bonus Offer Available to: All new traders Ending Date: 31 December 2017 Bonus Offer: $30 Free No Deposit Welcome Bonus

Get $2017 No Deposit Hot Bonus Promotion – FreshForex

Get $2017 No Deposit Hot Bonus Promotion – FreshForex(0)

$2017 No Deposit Hot Forex Bonus Offer to all new verified customers. The $2017 Hot No Deposit Forex Bonus offers you a unique opportunity to test trading strategies of FreshForex Link:  $2017 No Deposit Hot Bonus offers Available to: All New Traders. Ending Date: 30 April 2017 Bonus Offer: $2017 No Deposit Exclusive Hot Bonus

100% Real Money Cash Back Bonus Promotion – UFX

100% Real Money Cash Back Bonus Promotion – UFX(0)

100% Real Money CashBack Promotion 2018 to all new and existing clients. Join and gain exclusive access to the ONLY online trading 100% Cashback rewards bonus program Link:  100% Real Money CashBack Promotion Link:  $50 Forex No Deposit Bonus Promotion Available to: All new trading account Ending Date: 31 December 2017 Bonus offer: 100% Real

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories