Cover short position in Cotton in May and June contracts.
Cover short position in June contract at 16150 or below.
Open interest has increased with the rise and positive candle which indicates addition of long position.
Indicators like RSI, RS and Stochastic increased which suggest that near term rise can happen with volatility.
The last swing bottom was at 15750.
The low registered yesterday was 15840 and recovered to close at 16150.
A piercing line candlestick pattern was formed at or around the earlier swing bottom which suggest that fall is momentarily halt for minor pullback.
The pullback will be on the fall from 17140 to 15840.
The 50% and 61.8% pullback levels will be at 16480 and 16620.
TREND INFORMATION WITH INTRA-DAY LEVELS
STRATEGY
CLOSE
DRV
TREND*
Trend Price
Trend Date
L1
L2
CP
L3
L4
Cover short
16150.0
16384.5
DOWN
16390.0
19.05
15540
15920
16070
16300
16680
*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
16150.0
0.9
65230.0
93.8
4824.0
22.7
Positive
Addition Long
TECHNICAL INDICATORS TABLE
RSI
1-ROC-RSI
STOCHASTIC
1-ROC-STOCHASTIC
MACD
1-ROCMACD
RS
1-ROCRS
41.42
15.29
16.90
134.21
-33.04
-175.35
34.61
145.56
Note: Red Color Bar= Down Trend, Green Color Bars= Up Trend, Blue Color Bars= Sideways(Trend could be up or down), Pink Color line= DRV, V marked= Increase in Volume in relation to last few days. 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. Blue Color dots above the price are profit booking alerts. Purple dot on the charts are swing top/bottoms could be in place.
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.
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