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EU CO2 Falls After Testing Fibonacci Level: Technical Analysis
2010-08-11 09:05:31.304 GMT
By Mathew Carr
Aug. 11 (Bloomberg) -- European Union emission permits
fell after testing a key technical resistance level yesterday.
Carbon for December delivery dropped 0.6 percent to 14.42
euros ($18.81) on the European Climate Exchange in London as of
8:30 a.m. It rose to 14.65 euros yesterday, the highest price
since July 20.
"Yesterday, the contract tested the 50 percent Fibonacci
level at 14.65 euros a ton but was not able to break it," said
Emmanuel Fages and Carine Hemery, Paris-based analysts with
Orbeo, the carbon-trading venture of Societe Generale SA and
Rhodia SA.
Fibonacci charts use the ratio between numbers in the
sequence identified by 13th-century Italian mathematician
Leonardo Fibonacci. The ratio, known as the golden mean, locates
points of support or resistance as prices retrace rallies or
declines between previous highs and lows.
"Today, December EU allowances should oscillate around
14.50 a ton, even if we are still in a bullish trend," the
analysts said today in an e-mailed research note.
In technical analysis, investors and analysts study charts
of trading patterns and prices to forecast changes in a
security, commodity, currency or index.
For Related News and Information:
EU emissions-trading stories TNI ECREDITS EU <GO>
Today's top environment news GREEN <GO>
Renewable-energy markets home page RENE <GO>
Energy markets menu NRG <GO>
--Editors: John Buckley, Mike Anderson
To contact the reporters on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
