Carbon - Technical analysis - A correction in the horizon?


In the previous post, I shared with you an ambitious thought, which was predominantly based on a fundamental view rather than a technical view. Hence, I set a tight stop-loss.

Now, we see carbon testing some support levels, which I'm not confident it can breach in the short-term. That said, Brexit developments next week may provide some further direction. In the meantime, speculators have increased long positions and some profit talking could help carbon to retrace some of its recent gains. Volatility is expected to remain quite high.

Entering a short position with a tight stoploss around current levels seems a positive EV move with a decent risk-reward ratio.

All thoughts are written down so I keep track of my thoughts and are for educational purposes.

Would love to hear your comments.




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