This is a sample entry from Tom Dosdall’s newsletter, Dosdall Daily Edge, published on Monday, August 04, 2014.
There is a lot of cotton on the global market right now, and as you can see on the daily chart below, the market has sold off significantly since mid-June when it was trading in the 7750 price range.
That said, there are three primary reasons why I like taking a shot at buying cotton today. First, the daily chart looks to be forming a fish hook which might be a sign of a temporary bottom. Second, the TAS indicators appear bullish on both the daily and hourly charts. Third, I think some of these shorts might start to exit some of their positions if sentiment starts to turn even mildly bullish.
I view the “buy zone” as just above this current level of TAS Boxes on the 60 minute chart (6435). If filled, consider risking the trade to 6390.
For those unfamiliar, a 1 point move in cotton = $5.
Risk Disclosure
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