Cottonseed oilcake (COCUDAKL) futures have actually been showing a large trading variety in between 2,280 and 2,830 because May of the previous year. Although there was a quick rise above 2,830 in early 2023, this upward motion was short-term, with the agreement quickly pulling away listed below this level. The resistance at 2,830 has actually regularly shown to be a substantial barrier.
Nevertheless, in early August of this year, the agreement discovered assistance at 2,280 and started a bullish rally. Nevertheless, it came across resistance at 2,900 and has actually because backtracked, and is presently trading around 2,590. It appears that the agreement might possibly decrease to the next assistance level at 2,450, with the possibility of extending even more down to 2,280.
On the other side, ought to cottonseed oilcake futures handle to recuperate from their existing level, they are most likely to come across difficulties at 2,800 and 2,900.
Trade Technique.
Back on September 12, we suggested getting in a fresh brief position at 2,830 and setting a stop-loss at 3,000. Provided the agreement has actually decreased to 2,590, we recommend keeping this trade, however changing the stop-loss to 2,800.
If the agreement is up to 2,550, tighten up the stop-loss to 2,680. We recommend scheduling earnings when the agreement reaches 2,450.
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