Carbon Prices Climb Higher: Is a Rally Towards €90+ on the Horizon?

Carbon prices are making headlines as they push higher after breaking out on the weekly chart. Currently trading at €80.24 per tonne, traders are closely monitoring the €81.25 resistance level. A decisive break above this level could bolster confidence in a potential rally toward the €90 mark and beyond—territory not seen since October 2023.

Technical Analysis: Bullish Momentum in Play

The current momentum leans bullish, as indicated by several key technical indicators. Both the Stochastic Oscillator and Williams %R are in overbought territory, signalling the possibility of short-term profit-taking as carbon prices approach critical resistance levels. However, the underlying trend remains robust, supported by a rising MACD, which is nearing the zero line for the first time since late 2023—a bullish signal for traders.

What to Watch for in the Near-Term

While a minor pullback may occur due to overbought conditions, significant downside pressure is unlikely unless prices drop below the €70 support level. A breach of this level would suggest underlying weakness and could trigger broader sell-offs.

Key Takeaways

• Current Price: €80.24 per tonne
• Resistance Level: €81.25
• Next Target: €90 and beyond if resistance is broken
• Support Level: €70 (critical for maintaining bullish sentiment)

Carbon prices are at a pivotal moment, and traders will be closely watching upcoming movements. Will the market rally to new highs or consolidate near current levels? Stay tuned for further updates.