What do the Climate Exchange charts speak

The Climate Exchange chart is another term for carbon credits. Have a good look at the charts which are the same but in different time frames. The charts seems to have topped out. And a rising wedge formation there at the top does seems to give indications of some weakness in the prices. Even if the carbon credit story remains strong, we expect the prices to dip by 15 per cent at least. It may be of interest to quote that the rates have gone 4 times from the beginning of this year. The amount of fall could be deeper if things are not all well but we can expect the fall by that figure as a least possibility.
In our Indian context, the stocks that come to your mouth the moment carbon credit is called out are SRF and Gujarat Fluorochem and Navin Fluor. Can these stocks be expected to fall by as much as 15 per cent? Our guess is no but then when something affecting the company falls, the rates are bound to fall to some extent. Any one wishing to go long should wait for a little time more.
SRF in on the rumour mill to shoot up in the coming few weeks. Take care before entering.