It is ofetn written about in newspapers and trading journals that markets can go quiet. By this mean low activity and nothing really happening. There is no doubt that the UK energy market is much quieter than last year but a lot of this is down to the market fundamentals which show that there is a little bit of a ceiling being produced in the emissions markets and the gas and power markets. Floors also start to appear as buyers tend to come in if the trading houses get too aggressive as the potentially look at switching off plant and keeping the volume.

The result is impasse or rangebound trading and the way it changes is with fundamental changes. Traditionally in the power market long periods of rangebound trading tend to result in a break to the upside.