2.29 Zheng Mian: Adjustments rebound, short-term breakthrough

Zheng cotton market situation: February 29th, Tuesday New Zealand period higher, Zheng cotton main contract opened higher today, repeated shocks in early trading, long-term buying in the afternoon to promote long-term contract higher, recent contracts in the short-term concentrated support to strengthen under the support, the day The line formed a 1/2 lower shadow of the Yang Xian, and the volume of major contracts was enlarged. On the day of CF1205 contract, 13774 contracts were traded, and 1774 hands were lightened daily. The number of open positions was 98,422 lots. On the day of the CF1209 contract, 126,854 contracts were handed in, and 5764 hands were added to the daily position, and 273,224 hands were placed in the final position.

Relevant market conditions: ICE Cotton ** rose by cereal prices and the dollar fell on Tuesday.

Fundamental situation: The purchase price of seed cotton has stabilized and the purchase volume of enterprises has rebounded. In the Yellow River basin, cotton farmers are very helpless about the current cotton price, take a step forward, and sell it as the situation requires. In the Yangtze River basin, due to the downturn in the cotton market, the 400 large-scale planters can still make profits. However, the small spot market of the 200-type small mills is still out of focus in the spot market; it is understood that the cotton enterprises in certain regions have stopped processing. The acquisition of seed cotton is also coming to an end. In Xinjiang, there are currently well-known foreign investors acquiring Xinjiang cotton in Xinjiang, which is slightly higher than the purchase price. At the same time, acceptance criteria are lower than the national reserve. However, there are not many companies that sell in Xinjiang. In terms of cotton vices, cotton linters are still weak and turnover is small; other products remain stable. On the downstream side, the price of cotton yarn has decreased slightly. Some textile companies have been reluctant to accept yarn for sale, and the financial pressure on cotton purchase has increased. Therefore, the willingness to purchase raw materials is not high. On the 28th, China's cotton price index (CCIndex328) was 19,615 yuan per ton, down 6 yuan, and the average price of 527 cotton to the factory was 16,964 yuan per ton, down 2 yuan.

Technical Analysis: US cotton May contract rose to close the Yang Xian on Tuesday, the daily line broke through the 10-day moving average, today's morning adjustment of the ***0 day moving average received support, the midline to form a breakthrough signal, but not yet completely out of the shock down the pattern; 60 minutes graphic Adjusted back to the test 30 moving average to gain support and strengthen the market, forming a horizontal consolidation in early trading this morning, and the short-term pattern is also bullish.

Zheng Cotton opened higher today to test the 10-day moving average, supported by strong support, and finally closed at a high level. The middle line showed signs of strength. The CF1209 contract under the 60-minute chart showed that the 30 MA was supported and strengthened, eventually breaking the 22-day high of the neckline. Short-term formation of double-bottomed prototype, CF1205 contract also rebounded on the 20th and 22nd highs, pressure level first-line strength, period price exceeded 30 moving averages to suppress, but the current RSI7 slightly deviates from the short-term there may be adjustments.

Operational recommendations: CF1209 contract to adjust to try to do a little more, stop loss reference 21700 below, such as the market outlook can continue to ascribed to 22100 line pressure.