Friday, December 6, 2013

EUA Dec13: Santa to rally on carbon slopes this year?

The EUA Dec13 remained in the declining trend channel last week. The first attempt to break out on Monday was short lived, but the price touched the upper end of the channel at 4.73 euro on Friday. With this movement it even went higher than the upper Bollinger band at 4.70 euro. The movement was not sustained in the afternoon and the price returned into the trend channel and between the Bollinger bands. 

The question is, if the plenary on December 10 provides enough momentum to break these levels. In a positive scenario the price can rise until 5.04 euro. The next resistance levels are at 5.51 and 5.94 euro. 

It is also possible that market takes the positive outcome of the vote to be already priced in. In this case the price can be supported by the 4.27 euro level.

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