Thursday, January 31, 2013

EUA Dec13: Falling knife


The picture didn't change at all. Although it was oversold already the negative outcome of the ITRE vote on the 24th of January pushed the price to a historical low of EUR 2.81. The movement was overdone even according to the most pessimistic market participants. It recovered, but the main, declining trend is valid. The price just stops here and there to take a breath and continue its slope downwards.
The MACD is deep in the negative territory with the RSI at 21.5 (values below 30 signal an oversold market). The price seems to be pegged to the lower Bollinger band.



With the price in unexplored territory it is difficult to identify support levels, but the EUR 2.81 all-time low is waiting to be retested. Although the price didn't react to technical indicators recently, just dived, the possibility of a correction cannot be excluded. The closest resistance levels are at EUR 3.84 and EUR 4.11.


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