Monday, November 12, 2007

Cotton - Has broken the Triangle to the Downside

Cotton has broken the Triangle inside a Triangle pattern to the downside.

Now in order to confirm this break the price needs to continue to work lower and not stall.
We also would not want to see price move back into either triangle.

We went short cotton last week so we already are positioned for a move lower.

There is quite a bit of potential for sharply lower cotton prices both on a technical front and a fundamental perspective.

With an further substantial downside price action I will move my stop on the short position to break-even.

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