(KEUA) KraneShares European Carbon - Ratings and Ratios

The KraneShares European Carbon Allowance Strategy ETF (NYSE ARCA: KEUA) is designed to track the performance of futures contracts on European Union carbon credits traded under the EU Emissions Trading System (EU ETS). The fund focuses on futures contracts maturing in December of the next one to two years, aligning with the standard cycle of the EU carbon market. By targeting these specific maturities, the ETF aims to capture the forward price of carbon allowances, which are influenced by regulatory changes, industrial demand, and broader environmental policies. The fund invests at least 80% of its net assets in instruments tied to European carbon allowances, primarily through futures contracts. As a non-diversified fund, it may concentrate its holdings in a smaller number of securities, which can lead to higher volatility compared to diversified funds.

Based on the provided data, the ETFs technical indicators suggest a near-term downtrend. The last price of $21.33 is below the SMA 20 ($22.11) and SMA 50 ($22.63), indicating bearish momentum. However, the SMA 200 ($21.80) is slightly above the current price, suggesting potential support at this level. The ATR of 0.49 indicates low volatility, which may persist in the near term. Over the next three months, the price is expected to remain range-bound between $21.00 and $22.50, with limited upside due to the current bearish crossover of the SMA 20 and SMA 50. The low average volume of 2,650 shares suggests limited market participation, which could amplify price movements in response to external factors such as EU climate policy updates or changes in energy markets.