Cotton Wave Analysis 19 October, 2020

• Cotton broke resistance area

• Likely to rise to 72.00

Cotton recently broke the resistance area lying between the long-term resistance level 68.90 (former monthly top from February) and the resistance trendline of the narrow daily up channel from July.

The breakout of this resistance area accelerated the active short-term impulse waves (v) and 3.

Given the strong long-term uptrend – Cotton is likely to rise further toward the next resistance level 72.00 (target price for the completion of the active impulse wave 3).