After a fresh bull surge in EUA Carbon Emissions in Mar/Apr the subsequent pullback has so far displayed a typical 3-leg structure, with good support recently found from a 76.4% retracement. Bulls must do more to produce a clearer positive picture though.

The Commodity Specialist view

WEEKLY CONTINUATION CHART:

The 38.2% recovery level has remained first key resistance here, prompting a setback earlier this year which we presume to be temporary.

The 12.25/15 area provides the current floor, which bulls need to hold now.

DAILY CHART – DEC-10:

With a typical 3-wave corrective structure now seen, and following earlier erosion of a falling resistance/return line, clear support has emerged from the 76.4% pullback.

First resistance now comes from the 14.65 level, but for a more convincing recovery a further push is required through the bear channel top projection, 15.25 just now. Then, subsequent weakness is more likely to be short-lived

In the Commodity Specialist Guide we had suggested that buyers ahead of that 76.4% would have stops below. Partial profits may well be sought around 15.00.

The 12.25 Jan low should be safe from attack for the foreseeable future.

Mark Sturdy
John Lewis

Seven Days Ahead
Be sure to sign up for and receive these articles automatically at Market Updates

Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

© 2010 Copyright Seven Days Ahead - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Seven Days Ahead Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.