- Cotton reversed from resistance area
- Further losses are likely
Cotton recently reversed down from the resistance area lying between the key resistance level 75.30 (former multi-month support from September) and the 50% Fibonacci correction of the previous downward impulse from December.
The aforementioned resistance area was further strengthened by the upper daily Bollinger Band and by the 100-day moving average.
Cotton is expected to fall further and re-test the next round support level 70.00 (monthly low from January and February).