Tuesday, May 14, 2013

EUA Dec13: Captive of the moving averages

The little pattern we observed the last days seems to work perfectly. The EUA Dec13 is moving between the 20-days and 30-days moving averages. Today's low was EUR 3.28, just 2 cents above the 20-days moving average.

This level proved a strong support level until now, but was tested five times already.

Technical analysts say the more a level gets tested the weaker it becomes. We would be therefore careful with opening new long positions and strongly suggest putting a stop-loss.

If the 20-days moving average as support level breaks, the price might fall to EUR 3.

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