Friday, January 3, 2014

EUA Dec14: Low chances to go above 5 euro shortly

Although I have my reservations regarding technical analysis of an asset that is hardly traded, we can check what happened to the EUA Dec14 during this week. The candle of the 27th of December indicated already some hesitation and this week the price recorded a decline every trading day and reached a support level at 4.75 euro today. This proved a good support in December, and made the price bounce back today as well. 

After the continuous decline, however the MACD crossed the signal line giving the first bearish sign. The RSI didn’t follow and remained in neutral territory at 46.9. 

For the next days and weeks it will be critical if the 4.75 euro level can stop the price from declining further. If not, then the next support level is at 4.50 euro. In a positive scenario, the 4.85 euro level hast be retested first. Chances to go above the 5.16 resistance level next week are low.

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