Tuesday, October 29, 2013

At the mercy of politicians

Politicians and political talks, statements seem to be the main driving force of carbon in the most recent days and weeks. Each statement kicks the price higher, while fundamentals stand behind the gradual corrections.

Despite the price jumping to 5.40 on the 16 October, the market couldn’t keep up the bullish momentum. Similar situation happened last Friday.

This week we see a tight trading range. Carbon price seems to be a captive of 100 DMA giving the support around 4.70 now and short term 20, 30 DMAs providing the cap around 5.00 euros. Market stays nervous until 8 November when the Lithuanian Presidency asks each Member State for a mandate to enter into trialogue negotiations over the backloading proposal.

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