Yesterday afternoon’s rally in the cotton market(NYBOT:CTK14) has continued throughout the night and the market now finds price trading above 9200. A weak dollar and high demand for cotton have fueled a huge rally in this market, which could very well continue through today’s close. For those looking to jump on this rally, the 9191 level looks for a valid support pivot to place a stop below.
In the midst of a parabolic move like we’ve seen over the past few hours in Cotton, it is difficult to determine just how high the market will rise. All things considered, the market appears to be in a bull trend environment with extremely bullish near-term momentum. Buying corrective pullbacks seems to be the higher probability opportunity in this market opposed to trying to pick a top in this rally.