Earlier this week we shared a couple of trading ideas in the Commodities space. While Cotton as a commodity continues to shine through, we’re seeing some movement in the related stocks as well.
Today we’re here to connect the dots and see the impact of the rise in commodity prices on the related stocks.
So let’s dive in!
Cotton has been positive in the recent past and has been achieving its targets. What we’re seeing right now is an almost 8-year base breakout in the commodity! You can see the clean move and breakout on the monthly chart below. With that said, the long-term trend of this commodity will remain positive so long as it trades above the level of 24,225.
The next target to track would be near 30,000.
Click on the chart to zoom in.
So if the commodity is performing well, there must be certain stocks that must reflect this strength as well, right?
Right! We were going through some names that would require cotton as raw material and would benefit from this move. Some names have been showing strength and we thought this was a good time to share a couple of ideas.
To access our team’s Technical Analysis, you must be a premium member of All Star Charts India. Please login below or start your risk-free 30 day trial today.
Lost Password?