The weakening of technical signals has led to a reduction in long positions, causing a nearly 10 EUR/mtCO2 drop in prices since last Friday.
This drop in prices suggests that the market sentiment has shifted from bullish to bearish. Traders who previously held long positions may now be looking to sell their contracts to avoid further losses. However, it remains to be seen if this downward trend in prices will continue or if there will be a reversal in the near future.
As reported by ICE, EUAs futures were trading three times higher at 97 EUR/mtCO2 earlier this week on Feb. 27, compared to their level of 100,23 EUR/mtCO2.