Carbon (EUA) is a very technical market, as you can tell from my previous charts. Dec20 contract breached a strong resistance level and it could aim for €30/t. Additional support has been felt by fundamentals and Brexit developments.
In the short-term, the market could be bullish and attempt to set a new trading range, above the €26/t. That said, I doubt EUAs...
In the previous post, I shared with you an ambitious thought, which was predominantly based on a fundamental view rather than a technical view. Hence, I set a tight stop-loss.
Now, we see carbon testing some support levels, which I'm not confident it can breach in the short-term. That said, Brexit developments next week may provide some further direction....
A number of fundamental changes have affected EU ETS allowances, which are currently breaching MA200 - a strong technical level.
Weak EUETS auctions, low/negative dark spreads and Brexit concerns have provided pressure. Technically, Fibonacci 61%(used for resistance levels), and MA200 have been breached. All technicals, except RSI (which is not my...
Further to my previous post, the completion of the smaller inverse H&S also completes the bigger one. To push to the next resistance level will require some noticeable changes in fundamentals.
This analysis is for educational purposes only.
Carbon as a market has been following very closely technical signs in 2018. European Commision introduced Market Stability Reserve (MSR) a policy that aims to reduce the surplus of carbon allowances we are currently seeing in this market.
This analysis argues that EUAs tested the 21.40 three times but failed to breach it. That said, the triple top formation never...