EUA Dec11 price closing @ 11.60 EUR could be seen as a positive test of the breakout towards higher prices – although for a second part of yesterday trading, carbon tested also nerves of some trades, when the price retraced towards 11.45-11.50 EUR. At the end of the day it could have risen on the back of recovering oil prices (up to 82 USD from lows of 76 USD). We are now faced with a resistance @ 11.80 EUR and a possibility of forming new “higher high” above that level, which could indicate further strenght.
From the short time frame chart, 11.40 EUR seems to be a support level. We would not necessarily add to our long position as we are not far from a considerably strong resistance above 12.00 EUR where we could eventually exit from our positions.