Cotton moving average signals bear market
Tuesday, 8 June 2010
NEW YORK, June 7 (Bloomberg): Cotton prices are headed for a bear- market drop of more than 20 per cent this year after failing to close above their 50-day moving average at the end of last week, said Sharon Johnson at First Capitol Group LLC.
Cotton for December delivery, after the start of the US harvest, closed June 4 at 75.28 cents a pound on ICE Futures US in New York, below its 50-day moving average of 76.67 cents. That signals the contract is likely to reach 68.5 cents by the end of July and 60 cents by November, Johnson said.
Cotton for December delivery, after the start of the US harvest, closed June 4 at 75.28 cents a pound on ICE Futures US in New York, below its 50-day moving average of 76.67 cents. That signals the contract is likely to reach 68.5 cents by the end of July and 60 cents by November, Johnson said.