Carbon emissions pullback could bring buying opportunity
The carbon emissions market has been a consistent performer, but could today's decline provide a good opportunity to get into this reliable bull market?
Carbon emissions uptrend coming into question
The carbon emissions market has been one of the most reliable uptrends out there, with the past six months seeing a 135% rise in this market. The widespread expectation that emissions will be progressively more expensive in the European Union (EU) means that there is a clear direction of travel for this market. However, today has seen price fall back into a key short-term support level, with the confluence of trendline and €53.44 support bringing a key crossroad for this market.
Wider uptrend could come into play
While short-term sentiment will be driven by the reaction to this level, a break below the €53.44 would bring a wider retracement into play. The daily chart highlights a wider uptrend in play, with an ascending trendline dating back to November 2020. As such, watch for how price reacts to this current confluence of support, with the uptrend looking to kick in either here or at the lower of the two trendlines.
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