Best Financial Markets Analysis Article Earlier this year the game looked as though it was up for Cotton bulls, but fresh interest created new highs. A temporary halt has now been made, within a projection area that we had identified in the Commodity Specialist Guide, but can this develop into something more bearish?

The Commodity Specialist view

WEEKLY CHART - CONTINUATION:

A recent bull surge breached the long term 76.4% recovery level, but has found resistance near to a Fibo projection we have been showing in the Commodity Specialist Guide, at 85.00.

This projection is related to the fact that the early Feb low lies close to the current 38.2% pullback.

First interesting support here comes from the higher 73.10 23.6% level.

DAILY CHART – MAY-10:

The recent upsurge faltered just through rising resistance, and also close to a 84.00 Fibo projection (1.6178 swing off prior 77.83-67.80 pullback) – also noting the 85.00 level on the Weekly chart.

Initial reaction here has been negative. First support from the 77.83 high is so far holding, with a break below to provide a modest negative sign.

More important support lays some way off at present, a s/term channel base projection around 72.00, closing in on the 23.6% level from the Weekly chart.

Note possible resistance from a very s/term 76.4% bounce level at 83.20 (not shown).

There is currently downside risk, but we must wait to see if this develops into something more serious.

Mark Sturdy
John Lewis

Seven Days Ahead
Be sure to sign up for and receive these articles automatically at Market Updates

Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

© 2010 Copyright Seven Days Ahead - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Seven Days Ahead Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.