The Commodity Specialist view – 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.
- 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.
[For the complete and illustrated version of this and future Updates be sure to sign up at http://www.sevendaysahead.com/]
