“One positive line changes three views.” Just when the outside world was relaxing its vigilance on cotton at the end of the year, Zheng Cotton’s explosive rise was really mouth-watering. In response to the sudden bullish performance, external opinions are divided. Some believe that the rise is limited, while others believe that there will be good room for gains. Which one is right and which one is wrong has different positions and different conclusions.
As the saying goes: “There is no permanent decline, and there is no permanent rise.” After maintaining the bottom oscillation for a period of time, Zheng Cotton’s points gradually moved up. The main reason is that Sino-US economic and trade negotiations are improving, and the two sides are close to reaching a first-phase agreement. In this context, Zheng Cotton bulls are confident and the rise is natural. .
Some people say that even if China and the United States reach a first-phase agreement, the mutual tariffs between the two sides have not been completely cancelled. Moreover, in the long run, there is still a long way to go before the two sides completely reconcile. What was originally a protracted war has become How can it be done once and for all?
In fact, the market trend can explain and digest everything. Zheng Cotton has been consolidating in the long-term bottom range, and its performance has proven many times that the current market is extremely fragile. Once there is a disturbance in the market, Zheng Cotton will rebound immediately. The reason why it has not effectively broken through is that it lacks sufficient support from bullish news. The number of Zheng cotton warehouse receipts has hit new highs repeatedly, which has proved that cotton prices are in a value investment depression.
As early as August this year, the author predicted that during the trend downward process, the price of Zheng cotton would fall to the lowest point in the delivery month. Without the extreme pessimism in the early stage, the price of Zheng cotton would not It fell to around 12,000 yuan/ton. After that, new flowers came on the market, Zheng cotton gradually changed its trend, and the price gradually increased, until it exploded to around 14,000 yuan/ton at the end of the year.
How the market will develop in the future, someone has given a prediction point of 15,000 yuan/ton. The author believes that how high it can rise in the future does not depend on how high the long funds can pull it, but on when the hedging order will leave. When entering the market, the price is at a high point when leaving the market. The author believes that this round of rising performance has shown that the price of Zheng cotton has jumped to a new point, and the number of times it will fall below 13,000 yuan/ton may become less and less. </p
