On 3 april, the zheng cotton futures market fell significantly on the last trading day before the festival. The main contract cf 2605 received $15255 per ton, a decrease of $45 from yesterday's settlement price; the sub-main contract cf 2609 received $15315 per ton, a decrease of $100。
The market is divided by the recent month of resistance and the long-term fall, with the near-earth monthly price differential having narrowed sharply from $110 yesterday’s sticker to $60, $15180 having been hit in today’s plate, and a clear reduction in short-term panic。
Today's trend is the closest to a fall since the current round of adjustments。
The drop was significantly more pronounced, with the first three trading days falling by 110, 85 and 150, respectively, and today it is only 45, which narrows down to one third of the previous day. This is a typical sign of decline in kinetic energy failure, indicating that panic sales have largely been released。
The price differentials were significantly narrowed, ranging from $110 per month to $60 per month, the largest single-day repair since the successive fall; the price differentials were largely the result of the first fall in recent months (just 45 in recent months and 100 in the long term), which was the leading indicator of adjustments approaching the end; and in successive declines, the price differential structure remained healthy, without a pattern of panic that had fallen in recent months, which was the biggest downside。
Today, when the disk was hit, 15,180 yuan was recovered quickly, and the closing of $15,255 today stood firmly above the line; the solar rays (actually higher than yesterday's closing, but low because the settlement price benchmark showed a small drop) were picked up by the solar line, creating a “hammer line” to stop the fall; the kdj indicator was passivated in the overselling area and the rsi returned to the vicinity of 30, where there was a strong need for technical rebound。
After falling successively, the contract has fallen by only $45 in recent months, with the price gap narrowing from $110 to $60, and it tells us that panic has been released and the bottom is in the ground。
After the festival, with the return of funds and the release of centralized demand for technical rebounds, the market is expected to witness a wave of restorative increases. For those who are prepared to trade, recall is not a risk, but an opportunity. Control the silos, set up the damage, and wait patiently for the spring to bloom after the festival。
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