- Cotton broke support level 60.00
- Further losses are likely
Cotton broke the round support level 60.00 (which stopped the weekly downward impulse wave (1) in the middle of June)
The breakout the support level 60.00 continues the active medium-term impulse wave (3) – which belongs to the longer-term downward impulse sequence ③ from April.
Cotton is expected to fall further and retest the next major support level 55.00 (which stopped the weekly downtrend at the start of 2016).