COTTON

Long base formation on Cotton price might be close to completion with soft agricultural commodity breaching the 5 month-long horizontal resistance at 77.60 levels. The chart analyzes ICE Cotton May 13 futures price. Chart pattern can be defined as an ascending triangle or cup with handle formation with a round base that is spread over a 6 month period. Recent strength comes after low a volatility period thus increasing the likelihood of an upward trend. If cotton price remains above 77.60 over the next few days, we should expect acceleration on the upside towards 83 levels.