Cotton Started Multi-Decade Cycle Higher

From the all-time highs in 2011, a correction lower in wave ((x)) has unfolded as an Elliott Wave double three pattern. In 9 years, CT #F has become cheaper by 78% reaching 48.35 level. It is the preferred view that an important bottom on April 2020 has been set and the correction has ended. From the lows, a new multi-decade cycle within black wave ((y)) may have started.

For 2021-2040, the expectations are to retest if not to break above the all-time highs. The target for wave ((y)) will be 268-404 area. From current levels, the cotton can, therefore, triple in price.

Cotton Daily Elliott Wave Analysis 05.08.2021

The daily chart below shows in more detail the first stages of the new cycle within grand super cycle in black wave ((w)). From April 2020 lows, a clear impulse in black wave ((1)) has ended. A pullback in wave ((2)) might have ended at 77.12 on March 26th. While above there, wave ((3)) can extend higher. Long term investors can be looking building up a long position in pullback against 48.35 lows expecting more upside.

 

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