Carbon trading in a downward channel, perhaps on its way to test the key support of €80.30. A test of this support might enlighten investors on its near future.

Carbon currently trading at around €82.23. We can see that on the daily timeframe, the market is trading within the pattern of lower highs followed by lower lows, this is highlighted by the yellow channel drawn on the chart. At the moment, it seems like it is on its way to test the lower trendline of the channel once again, where support can be found at €79.54. A break below it compared to another bounce back could see the market test the key support level sitting along the white supportive trendline, or respectively, €78.02. A bounce off the channel trendline may see carbon head back up within the pattern once again, with the resistance then at €81.69 then at €83.36 and finally €84.07. A break above €84.07 could spark some incentive for the bulls with a suggestion that a reversal trend may have started, however, this would only be more likely if we saw a move above €86.09 (near September’s high). Looking at the technical indicators, they suggest a mixed perspective as the MACD is positive but volume is lowering and the RSI has turned negative today as it reads 43.