best reason for today's fall folks?
+------------------------------------------------------------------------------+
EU CO2 Falls After Reaching Bollinger Band: Technical Analysis
2010-10-12 10:27:54.199 GMT
By Mathew Carr
Oct. 12 (Bloomberg) -- European Union carbon permits
declined from the highest level in almost four months after
rising yesterday beyond the upper limit of their Bollinger band.
EU carbon permits for December delivery decreased as much
as 1.5 percent to 15.60 euros ($21.52) a metric ton and were at
15.62 euros as of 10:15 a.m. on London's European Climate
Exchange. They closed yesterday at 15.84 euros a ton, their
highest price since June 14, for a gain of 26 percent this year.
Yesterday's intraday high price of 15.90 euros was above
the upper Bollinger band of 15.86 euros, based on a 20-day
moving average. The Bollinger bands, which reflect historical
price swings and possible support and resistance levels, have
narrowed since July 15 as the market moved within a tight range.
"The contract touched the superior Bollinger band,"
Emmanuel Fages and Carine Hemery, analysts for Orbeo in Paris,
said today in an e-mailed research note. Orbeo is the carbon
venture of Rhodia SA and Societe Generale SA. "After a strong
rally yesterday, December 2010 EU allowances should decrease to
15.75 euros a ton today."
Volume for the December contract rose 71 percent yesterday
to 10.1 million tons on ECX.
Carbon for December 2013 rose 31 cents yesterday to close
at 17.86 euros, also its highest price since June 14. Utilities
buy carbon allowances to match forward sales of power. German
power for next year dropped 0.9 percent today to 48.80 euros a
megawatt hour, according to prices from brokers.
For Related News and Information:
Emission market news NI ECREDITS <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
--Editors: Mike Anderson, Bruce Stanley.
To contact the reporter 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
