Cotton still trying to hold above support

[For the complete and illustrated version of this and future Updates be sure to sign up at www.sevendaysahead.com] Cotton has been lackluster for some time now, prices gradually easing. An interesting support line has now been reached – this could be a pivotal point now, with some evidence that bears are tiring. The Commodity Trader’s view WEEKLY CHART – CONTINUATION: The fall from the Mar peak found support at the 61.8% level on the continuation chart. It remains a key level. DAILY CHART – DEC-08: The falling support line is now providing interesting support here. Note how the RSI momentum indicator still shows a positive divergence – possible bear fatigue. A break above the s/term falling resistance line would be of minor encouragement, while a further recovery above 75.00 would be quite a strong bull signal/ confirmation. We could then start looking at bull targets. However, there currently remains the risk of a break below the support line – this would invite acceleration downward, and probable breach of the 61.8% support on the weekly chart. Philip Allwright Mark Sturdy Seven Days Ahead