HY Newsletter – Cotton Reversed From Resistance Zone

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Stocks Report: Microsoft Corp.

Microsoft completed ABC correction (2)

Likely to rise to 52.00 

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Microsoft recently reversed up from the strong support zone lying between the support levels 50.00 and 49.00, which have been repeatedly reversing the price from the middle of January, as can be seen below. This support zone was further strengthened by the lower daily Bollinger Band and the surrounding 38.2% and 50% Fibonacci correction levels of the previous sharp upward impulse from August.  The upward reversal form this support zone completed the previous ABC correction (2). Microsoft is likely to rise to the next resistance level 52.00.

 

Commodities Report: Cotton

Cotton reversed from resistance zone

Likely to fall to 0.6100

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Cotton recently reversed down sharply from the resistance zone lying between the resistance levels 0.6440 and 0.6640 (which reversed the previous primary ABC correction ② from the end of February). The latest downward reversal from this resistance zone stopped the earlier minor correction (ii) – which belongs to the minor impulse wave 1 of the longer-term downward impulse wave ③ from the start of this month. Cotton is expected to fall further in the active impulse waves 1 and ③ toward the next support level 0.6100.

 

Index Report: Nikkei 225

Nikkei 225 approached resistance zone

Likely to fall to 15500.00

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Nikkei 225 recently reversed up from the pivotal support level 15500.00 (which also previously reversed the (B)-wave of the earlier primary ABC correction ② from the middle of February). The subsequent upward correction (ii) today stopped in the resistance zone lying between the resistance level 16300.00 (breakout level of the previous up channel from February) and the 50% Fibonacci correction of the earlier downward impulse from the end of May. The index can be expected to retest the aforementioned support level 15500.00 in the nearest time.

 

Forex Report: USD/CAD

 USD/CAD reversed from resistance zone

Likely to fall to 1.2670

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USD/CAD continues to fall inside the minor impulse wave 3, which stared earlier – when the pair reversed down from the resistance zone lying between the resistance level 1.3100 (which previously reversed the earlier intermediate ABC correction (2)) and the 50% Fibonacci correction of the previous sharp downward impulse from the end of February. The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Falling Star. USD/CAD is likely to fall to the next support level 1.2670 (which stopped the previous impulse wave 1).

 

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