Cotton has been falling for the past few months. Signs of consolidation and lost of steam has begun. Before we go into the charts, a brief summary of what we see empirically - Prices tend to bottom out around August. Immediate low presents a strong support due to historical hits and fib hits.
RSI and MACD has indicated buy signals. Confirmation upon; 1. Positive engulfing, breaking up from the consolidation (0.695).
Trade details SL: yellow region below current price indicates strong resistance; Partial profit: short term at boarder of green rectangle. Fib retracement levels coinciding with previous lows Duration: 3 months at least