Cotton Wave Analysis – 28 January, 2020

• Cotton reversed from support area
• Likely to rise to 71.00

Cotton recently reversed up sharply from the support area lying between the support level 68.00, lower daily Bollinger Band and the 38.2% Fibonacci correction of the previous sharp upward impulse 1.

The upward reversal from this support area created the daily Japanese candlesticks reversal pattern Hammer – which started the active impulse wave 3.

Cotton is likely to rise further toward the next resistance level 71.00 (which reversed the price multiple times earlier this month).