Cotton down 50% – anatomy of a downtrend

Apr 30, 2007: 10:06 AM CST

Cotton futures recently declined more than 50% from their 2004 swing high at $110, and have declined 67% from their 1998 price swing high of $150. If you study and analyze this chart, you can experience the anatomy of a downtrend with clean price swings and consolidation patterns (I have indicated a triangle pattern in the most recent chart).

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Here is the weekly price of cotton futures since 1998.

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