Technical Analysis Of Cotton Market In Recent Two Years

< p > in the first four months of 2010 to the first four months of 2011, the a href= "//www.sjfzxm.com/news/index_s.asp" > the cotton market < /a > was quite calm. Then the cotton market woke up from the great sleep, and the volume of pactions doubled more than its historical record.

In the first two years, after the price rose and the overall regression took place, the May 2013 contract in CME Globex and ClearPort showed its birth power in the near future.

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< p > < strong > is the future market going up or is it going to be a concussion? < /strong > < /p >

What is the future trend of the market? < p > < a > href= > //www.sjfzxm.com/news/index_c.asp > cotton > /a > what is the future trend of the market? Is the major change in the cotton market just a flash in the past, or is a change in the fundamentals of the cotton market leading to a more severe fluctuation in cotton prices? The basic principles and price dynamic analysis of the technology show that there is too much information for individuals, groups or organizations to influence them effectively.

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< p > in short, there are too many variables, too many information, or even unknown variables, which affect market dynamics.

But all the factors are revealed in the chart. The decisive factors in the chart affect the price trend.

Even if the internal information is reflected in the chart, the understanding of price trend and technical analysis tells traders that they need to know all the products.

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< p > what is the "pricing", results, weather and so on about crop rotation, how does the price without price tag react to the fundamental news of the market?

Finally, all factors are knowable and are reflected in the market. They are reflected in the price trend of the chart.

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< p >, therefore, learning price dynamics, traders know what is the product.

This is a general case of parametric technical analysis, especially price dynamic analysis.

Price dynamic analysis avoids most imaginative indicators most of the time, focusing only on how prices are run within a given time frame.

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< p > < strong > now the market is increasing by a large margin < /strong > < /p >.

< p > therefore, the cotton market has changed significantly from 90 cents per pound in September 20, 2010 to 2.20 US dollars / pound in March 7, 2011, and then dropped to 68 cents / pound bottom in June 4, 2012.

After hitting the bottom in June last year, the market climbed to 71 cents / pound in November 9, 2012, and since then, the market has been climbing, closing at 83.19 cents / pound on Friday.

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< p > how will cotton respond to the first major amendment in 2013? < /p >

< p > cotton has tried to break through the above 84 cent resistance area, and it has been rejected four times in February.

It seems that some recent trends are mirroring the S&P 500 and the general market.

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"P" over the past three weeks, the market has easily broken through the 81 - cent level of support and has not been rebuffed.

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< p > now, you should know that market sentiment is very optimistic and there is not much market enthusiasm in 2013. Therefore, before we are too excited about the recent bottom up rebound, we need to observe how cotton responds to the first close down of 100 points in the Dow Jones industrial average.

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< p > the market may just be a concussion, similar to most historical pactions. Historically, it is not a very exciting market paction.

Judged by historical standards, this is not an entirely exciting market.

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< p > < strong > resistance level < /strong > /p >

< p > if the market is sure to break through the 84 cents resistance level, then it is possible to ensure a 90 cent level.

The next more powerful resistance will be around 100 cents per pound.

The final resistance level is 110 cents / lb. If the price is exceeded, the cotton market is not only slightly optimistic.

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< p > the market convincingly breaks through every price, which should provide strong support for market consolidation.

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< p > < strong > supporting position < /strong > /p >

< p > when it comes to falling, if cotton falls below 81 cents, then the price is expected to drop to 77-78 cents support interval.

The next support interval is 71-72 cents, which will be a strong entry point for multi entry.

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< p > but even if it falls below 68 US branches, the market will still find a real strong support at 60 cents / pound.

If it falls to 40 cents / pound, it will lead to a recession / market crash. Of course, when all assets are withdrawn from the market and only "protect my property", no one will be willing to do more than a href= "//www.sjfzxm.com" > commodity /a.

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