Cotton Wave Analysis – 01 October , 2018

• Cotton broke multi-month support level 78.20
• Further losses are likely

Cotton recently broke through the strong, multi-month support level 78.20 (which has been steadily reversing the price from the start of April).

The breakout of the support level 78.20 accelerated the active short-term impulse wave 5 – which belongs to the extended impulse wave (C) from the end of July.

Cotton is expected fall further and retest the next strong support level 75.00 (monthly low from February and the  forecast price for the completion of the active impulse wave (iii)).