ELLIOTT WAVE INTERNATIONAL
P.O. Box 1618, Gainesville, Georgia
800-336-1618
(March 14, 2002) COTTON: May cotton is beginning an advance that will push prices toward 51.33. With five waves up from the October 2001 low and three waves down from the November 2001 high complete at 35.00, May cotton is again positioned to rally in true third wave fashion. Critical support for keeping this bullish outlook on track is 35.00.
Resistance at 51.33 represents the point where wave 3 will equal a 1.618 multiple of wave 1.
Cotton May Contract Daily
© March 2002 Elliott Wave International.
Also worth noting is how close the November selloff came to the .618 retracement of the October rally at 34.75. The February low occurred at 35.00, moderately above this significant Fibonacci retracement. It pays to track where 38%, 50% and 62% retracements occur.