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

Get 100% Bonus Promo Doubles your Deposit – FBS

Get 100% Bonus Promo Doubles your Deposit – FBS(0)

Get 100% Forex Bonus Doubles your Deposit FBS Broker has prepared something really special for you. Activate 100% Forex Deposit Bonus and make your trading x2 more efficient Link:  $50 Free Will be credited to Your Account Link:  $88.8 Forex No Deposit Bonus Link:  $123 Forex No Deposit Bonus Link:  100% Forex Deposit Bonus Promotion

Free SERENITY Tokens for Forex Trading – Grand Capital

Free SERENITY Tokens for Forex Trading – Grand Capital(0)

Get free SERENITY tokens for forex trading on ECN Prime and/or Standard account. SERENITY Free tokens can be used to pay for Serenity Financial platform services or sold on an exchange after the ICO ends. The nominal price of 1 token is 0.1 ETH. Link:  Free SERENITY Tokens for Trading Link:  444% Profit Receive for

Trading Signals and get your opportunity to succeed – FXTM

Trading Signals and get your opportunity to succeed – FXTM(0)

Take advantage of ForexTime Free Forex Trading Signals and get your opportunity to succeed. Get Free Forex Trading Signals prepared by ForexTime professional analysts Link:  FREE trading signals Special Promo Link:  Start Copy Trading your Perfect Partner Link:  $25 Per Referral Earn up to $10000 Link:  Receive $30 Tradeable Credit Free Bonus Link:  Demo Forex

Get 100% Bonus Trusted and Regulated Broker – AvaTrade

Get 100% Bonus Trusted and Regulated Broker – AvaTrade(0)

Register and forex start trading now and claim your 100% Deposit Bonus minimum fund of $100 for first deposit. Just for new customer we welcome you with some fantastic 100% Bonus Offers Link:  100% Bonus to Your First Deposit Link:  35% New Accounts Bonus Promotion Link:  Advantages of Trading Bitcoin Cash Available to: All new

Win-Win Live Trading Forex Contest – Tickmill Ltd.

Win-Win Live Trading Forex Contest – Tickmill Ltd.(0)

Holiday 2017 season is just around the corner and Tickmill is rewarding you with real Bitcoin prizes and rebates. Win-Win Live Trading Forex Contest ensures there is a prize for everyone! Link:  Win-Win Forex Live Trading Contest Link:  Weekly Demo Race Trading Contest Link:  $30 Free Welcome Bonus Offer Link:  Forex Monthly Live Trading Contest

$3500 Forex No Deposit Bonus, Risk Free Trading‎ – InstaForex

$3500 Forex No Deposit Bonus, Risk Free Trading‎ – InstaForex(0)

Get $3500 No Deposit Free Bonus from InstaForex no need to risk your own money if you have already got funds to earn more money. The $3500 No Deposit Bonus from InstaForex is an exciting opportunity to start live trading. Link:  Up to $5000 No Deposit Free Bonus Link:  $500 Forex No Deposit Free Bonus

444% Profit Receive for a Single Trade – Grand Capital

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

Up to 444% Profit receive with our new Express Options for Grand Capital Binary Option Broker Ltd. 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

Receive $30 Credit Bonus for Trusted  Broker- FXTM

Receive $30 Credit Bonus for Trusted Broker- FXTM(0)

Switch to ForexTime and receive $30 Trading Credit Bonus. Join the hundreds of thousands of traders around the world who have already chosen ForexTime as a broker and receive $30 Trading Credit Bonus as a thank you for switching. Link:  Up to $200 Cash Bonus this December Link:  Receive $30 Tradeable Credit Bonus Link:  FX

15% Support Margin Bonus and $50 Free Bonus – FortFS

15% Support Margin Bonus and $50 Free Bonus – FortFS(0)

15% Support Margin Bonus Plus $50 No Deposit Bonus to all New and Existing Traders. For Every Traders who passed the verification process in their traders room can get the $50 Free Bonus Link:  $50 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: 15% Support Margin Bonus As from

Get $34 Forex No Deposit Bonus Contest – Xtream Forex

Get $34 Forex No Deposit Bonus Contest – Xtream Forex(0)

Sign-Up and Get $34 Forex No Deposit Bonus Contest Enjoy Forex Trading Without Deposit. Grab your $34 Forex No Deposit Bonus and start your live Forex trading to win big cash prize. Link: $34 Forex No Deposit Bonus Contest Available to: All new clients Forex $50 No Deposit Bonus Contest Duration? Registration is open till

read more

Forex Featured BrokerSocial Trading

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