Following on from last week’s EUA Carbon Blog post, we saw weakness on Friday down to 71.25.
What did we say to clients in this morning’s report on the back of this? Here we go:
Candlestick Chart & Technical Analysis
•Short term Trend: Bearish
•Medium term Trend: Bearish
•Yesterday’s candle:
We are now asking if we can get a CLOSING breach of this (74.74) level but if this doesn’t happen the sellers have a chance to return.
And return they did on Friday; weakness seen back to 71.25 late on. The result is a large red candle with Marabuzo resistance at 72.88. This says “retrace done” which in turn says the bears can get busy once more.
•Fibonacci says: 74.74 is 38.2% of the recent selling. 81.94 is the 61.8% mark. Both of these line up nicely with levels that were created on this sell-off… Nice symmetry. – 74.74 HIT!
•Moving Averages/Indicators/other: RSI and MACD both bullish now.
•Summary/Thoughts: 74.74 in play now.
•Favoured Trade(s) for today: Sell rallies/breaks.
•Bigger Picture thoughts and targets: 63.26-30 HIT! Can we see a response from the bulls? – Errrr…. Well… yes! Then another response on hitting the retracement target at 74.74.
Market Profile
•Profile setup/levels: 72.83 and 73.52 are vacuums left above on Friday. The former coincides with Marabuzo resistance.
•20-day CHVN: 70.00.
•Naked VPOCs below: 71.37, 70.77, 62.50
•Naked VPOCs above: 78.00, 80.00, 83.00, 84.50, 86.50, 89.80, 93.10.
•SPVs in play below: 67.56
•SPVs in play above: 72.83, 73.52, 75.17, 86.31, 86.65
Support & Resistance Levels
Key
Purple = Marabuzo lines
Green = Fibonacci level
Blue = Market Profile level
Orange = Trendlines/Chart Pattern levels
Clive Lambert FSTA – FuturesTechs
25 years of institutional expertise in the UK and European Energy Markets and 10-time Technical Analysis award winner. Clive provides industry-standard technical outlook, utilising Market Profile and Candlesticks Analysis for over 100 global trading desks.
Disclaimer:
This communication has been prepared solely for information and data purposes and is not intended as an Invitation or Inducement with respect to the purchase or sale of any financial instrument. This communication should not be regarded as a substitute for the exercise by the recipient of its own judgement. Any reliance placed on the communication is at the reader’s risk. Information and opinions have been obtained from sources believed to be reliable but no representation is made to their accuracy.