MUMBAI(Commoditiescontrol): Traders long and holding the same can revise up the stop loss to 75.
Last week, Cotton price traded above the Monday’s open and above 78.32 and as a result of which a buy got triggered above 78.32.
The high registered subsequently was 81.42.
Traders who were able to implement had the opportunity to benefit.
A big bullish candle was formed which suggest a swing bottom at 76.44 as higher low and higher high was formed with bullish candle.
Earlier the correction from 84.45 to 76.40 was in between the 50% and 61.8% retracement of the rally from 67.75 to 84.45. The price correction appears to be complete and look likely to move higher with volatility towards the peak of 84.45 and eventually towards 89 for completion of Wave (c).
Expect higher range of 82.85-87.31 to be tested with volatility.
Since last week’s candle was large, intra-week correction could be witnessed to 79.91 or below.
Weaker opening and correction first to 79.91-78.39 can be used for buying with a stop loss of 75.
The recent peak was at 84.45 and the same could be tested.
On sustained rise and close above 84.50 with bullish candle expect a rally to 89.
A larger pattern of (a), (b) and (c) is marked on the chart for reference and Fib-Proj. of 89 as well for Wave (c).
TREND INFORMATION WITH INTRA-DAY LEVELS
|
STRATEGY
|
CLOSE
|
DRV
|
TREND*
|
Trend
Price
|
Trend
Date
|
L1
|
L2
|
CP
|
L3
|
L4
|
|
-
|
81.34
|
77.83
|
UP
|
81.3
|
23.02
|
73.93
|
78.39
|
79.91
|
82.85
|
87.31
|
*Trend will remain Down as long as last close is below the pink color DRV. Trend will be Up as long as Price is above DRV. Positional Traders: If trend is up then traders long can hold long position with closing stop loss of DRV: Close >DRV. If trend is down then traders can hold short position with a closing stop loss of DRV: Close <DRV.
PRICE, VOLUME AND OPEN INTEREST STRATEGY
|
Close
|
PRICE G/L%
|
VOLUME
|
% V INC/DEC
|
OPEN INTEREST
|
% OI INC/DEC
|
CANDLE
|
POSITION
|
|
81.3
|
5.4
|
91665
|
-20.5
|
-
|
-
|
Positive
|
-
|
TECHNICAL INDICATORS TABLE
|
RSI
|
1-ROC-RSI
|
Stochastic
|
1-ROC-
Stochastic
|
MACD
|
1-ROC
MACD
|
RS
|
1-ROC
RS
|
|
63.76
|
14.78
|
26.92
|
147.28
|
2.39
|
4.95
|
57.41
|
42.69
|
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Disclaimer: There is risk of loss in trading in derivatives and the report is not to be construed as investment advice. The information provided in this report is intended solely for informative purposes. The author, directors and other employees of CC Commodity Info Services cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above.
(By Commoditiescontrol Bureau; +91-22-40015534)
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