July Cotton reached its H&S Top objective today ~ 149.03. It reached this area pretty quickly: over 39 points in just 12 trading days. The reward to risk ratio was a solid one: 2.63 to 1.00. It takes deep pockets to trade this market, but if you have the capital it would’ve meant risking ~ 7475 to make ~ 19660 on a one lot. Not bad for less than 3 weeks work. Yesterday I stated there is some potential support in this 130-150 area. We touched the top end of this range today. Let’s see if we get a bounce from somewhere in this area in the next few days. You saw the first real signs of buying in 3 weeks with the lower shadow on today’s candle. I expect some lower prices before we get a significant bounce.
