Downtrends Dominate, Except ERCOT
August 26, 2024
If you are looking for a trend opportunity, technical analysis could help. Three Exponential Moving Averages (TEMA) is a popular technical analysis indicator used to analyze the direction of a market trend. TEMA looks to eliminate market noise, smooth price fluctuations and eliminate lag. TEMA identifies trends (uptrend, neutral, downtrend) based on the position of the short Exponential Moving Average (EMA) versus the two longer EMAs. In this case, a 10-day EMA versus a 20-day EMA and a 50-day EMA. This table illustrates the trend for power futures contracts from 2025 through 2028.
Data source: DTN ProphetX