Again carbon is holding strong compared to the performance of other markers. All stock markets are in a big sell-off after S&P lowered the rating for US debt, however on the emissions market EUA Dec11 were trading in a relatively narrow range, oscilating around 10.70 most of the day yesterday. Reason for this may be a demand from utilities for whom this level seem attractive to hedge their shortage.
Yesterday we opened short position @ 10.72 EUR with Stop Loss @ 11.16 EUR. In the second part of the day, we saw a significant resistance @ 10.80 EUR, however good support @ around 10.60 surprises us and may lead to closing the short and looking for another signal of breaking higher or lower. Good recovery, twice, from below 10.40 EUR may signal enough buying strenght to breakout higher from the above highlighted triangle.