Cotton Wave Analysis – 20 August, 2019

• Cotton reversed from support area
• Further gains are likely

Cotton recently reversed up from the support area lying between the multi-year support level 56.70 (which has been reversing the price from 2015) and the lower weekly Bollinger Band.

The upward reversal from this support area created the two consecutive weekly Japanese candlesticks reversal patterns – Hammer.

Given the oversold weekly Stochastic indicator – Cotton is expected to rise further and retest the next resistance level 60.70.