Thursday, August 15, 2013

EUA price upward march faces resistance

EUA price moves steadily up, creating a trend that started early in July from 4.05 euro level. Most of the days in July and August witnessed very low volatility of approx. 10eurocents a day, creating little incentives for daily traders, which, to some extent, may have affected liquidity. Most recent attempt to break above 4.60 has failed for now, but reasonably strong support at around 4.30 indicates that bulls have not yet given up. We have several moving averages around those levels: MA20 ~ 4.35, MA30 ~ 4.28 and MA50 ~ 4.32 all giving support. RSI around 50 is in neutral territory.

In short term traders may be seeing 4.45 as possible resistance and only breaking this level can pave the way for further gains.

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