Utility Management Group
Senior decision-makers come together to connect around strategies and business trends affecting utilities.
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When should you close power prices?
When should you close power prices?
In the free markets, this question is central for those who want their companies or institutions to always operate in a competitive fashion.
The answer is quite simple: when prices are very attractive! But... what is an attractive price?
There's a methodology I've been using for years, very robust and that produces great results. It is the same one used by investors to evaluate financial market stocks, ETFs, bonds, etc.
You decide to buy when the market price is below its moving average and the relative strength index is low.
Conclusion: you close prices for future delivery when the offer is consistent with the proposed parameters " as opposed to closing at the end of the current, ongoing contract.
If you would like to learn this method, make sure to get in touch!
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