Despite the positive mood in the opening on Monday, the EUA Dec14 fell to the 20DMA at 6.68 euro before the market closed last week. On Tuesday the 30DMA at 6.38 proved a strong support, but by the end of the day the price managed to climbed back near 7 euro. Wednesday and Thursday produced two doji candles wobbling on the 20DMA. Buyers invaded the floor Friday afternoon and pulled the benchmark carbon contract above 7 euro, but the fact that it couldn’t close above this level is a sign of weakness . RSI was in neutral territory (60) on Friday.
This week the price is expected to be driven by the speculation on Wednesday’s UK auction, the first one with reduced volume. The next resistance levels are at 7.15 (price plummeted from here last Monday) and 7.41 euro (the high from 3rd March).
After the auction the possibility of a correction cannot be ruled out, but downward movements can be halted by support levels at 7 euro, 6.78 euro (20DMA), and 6.49 euro (30DMA).