Monday, July 14, 2014

EUA Dec14: Looking for direction in the absence of major news

The candle from the 4th of July broke the slowly increasing trend channel and the close below 6 euro made traders more cautious. The MACD crossed the signal curve giving a selling sign. The depreciation continued on Monday and the price fell below all moving averages before stopping 5 cents above the 200DMA. After falling more than 10% the price started a correction on Wednesday and the two last candles formed a bullish engulfing. This was however only enough to start a range bound trading between 5.60 and 5.84 euros in the last three days of trading. RSI is in normal territory (52).
If the price breaks out of this range, the first resistance to break is at 5.93 euro and the strongest support is the 200DMA at 5.41 euro.
All in all, the technical picture is neutral at the moment.

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