The Price Difference Between China And Foreign Countries Is Obvious. China Textile Mill Is Waiting For Import 40% Tariff Cotton.

P > ICE < a href= > http://www.91se91.com/news/index_f.asp > cotton futures < /a > - the last half of this week was characterized by a continuing slouch in the paction, the price hovering near 77.50 cents, the volume narrowing, and the closing of the December -3 contract.

However, yesterday's strong market morning, once cleared the recent resistance, activate a series of stop loss buying.

The market price rebounded 200 points from this week's low point, but close to the close, the market dropped and rebounded most of the gains.

Whether the market behavior is technical or fundamental, there is controversy.

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< p > in fact, the recent price behavior is obviously different from the energy shock.

For example, RSI and random index show (for example, price innovation is low, RSI / random index is not).

Many times, this situation indicates that this dynamic is about to end, at least temporarily, and then there will be a stage of corrective action.

It is rumoured that China intends to postpone its sales plan of < a href= "http://www.91se91.com/news/index_s.asp" > reserve cotton < /a > to December or January, which seems to explain some of yesterday's market developments.

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< p > as mentioned in the previous report, the large price difference between Chinese and foreign cotton prices is still a supporting factor. The current price is close to < a href= "http://www.91se91.com/news/index_c.asp" > Import Cotton < /a > plus 40% tariff level. For Chinese textile mills, they begin to feel the reason for importing (based on the assumption that the selling price of reserve cotton is 18000 yuan / ton).

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< p > technical aspect: there has been no significant change compared with last week.

The main trend is bearish, but it is likely that upward corrective action will take place.

The support level is 77.50-77.00 cents, and if it goes down, the lowest support will be 75 cents.

The short-term key resistance is 80.50-81.50 cents.

If the closing price is above 84 cents or the value is stabilized by 84 cents, it may negate the current bearish figure.

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