This is a Cotton Chart. This is beginning to look interesting. Notice how we are approaching the typical seasonal low. The commercials have been increasing their long positions in general on this dip the last few months.

The Red Line is just a basic trendline, nothing fancy there. This market is in a pronounced downtrend, so we do not want to get too carried away with catching the knife on dips. We need to watch this to see if the commercials increase their longs on a break to new lows in the next few weeks.

If this were to occur, then one good place to buy would be on any break above the downtrend line. We could buy weakness on that condition also, if we got some type of divergence. The Pro Go at the bottom is diverging somewhat at this point. If price were to make a lower low, with Pro Go not following, that is another possible setup. We will follow this here to see what unfolds.