Cotton May Extend Rally 17% Before Falling: Technical Analysis
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Cotton futures, already trading at a record, may jump another 17 percent after prices topped their historical trading range, according to a technical analysis by independent analyst Jim Stellakis.
Weekly price charts show cotton has traded mostly between 30 cents and 97 cents a pound in New York since 1972, Stellakis said. The fiber began to exceed that 67-cent trading range in September on a “mix of fundamentals,” signaling another rally by that same amount, he said. Futures will rise to $1.64 a pound in the next month or so from today’s record of $1.4052, he said.