Mixed moves on the market testing support and resistance levels within the narrow range

The market continued to move in rangebound fashion on Tuesday, testing support and resistance levels within the narrow range established over the past couple of weeks.

Yesterday saw the majority of contracts opt to swing lower, with the Summer 26 contract slipping just below the multi-year low set on 10th December but facing robust psychological support that prevented a further decline.

Peace talks between the US, Ukraine and other European allies in Berlin were described as ‘productive’ by Ukrainian President Zelenskyy and the US said it is ready to offer Ukraine NATO-like security guarantees to safeguard an eventual ceasefire agreement.

Baseload power prices also saw notable declines following a late afternoon sell-off.

This was despite a further increase in gas-fired power demand when compared to the previous session.

Data from Elexon shows that wind averaged at just 7.2GW, a stark contrast to 20.8GW recorded on the same day last week.

An ongoing rally on the European carbon market served as an underlying source of support for the power curve, limiting downside potential.

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Price commentary courtesy of Crown Gas and Power