Monitor and predict the growth prospects and potential risks of the Electricity industry by examining the financial and macroeconomic factors affecting it and the latest Electricity news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Electricity updates and get full access to MacroVar advanced analytics of Global Financial Markets, Economies and Financial Risk.
Click to explore the factors and the financial models used by MacroVar to analyze the Electricity industry trend, growth prospects and risks.
Electricity industry Markets
|US Electricity industry||US.ELECTRICITY||303.15||1||0.75||0.55592||56.4482||-0.14||2.14||-2.11||-0.05939|
|Europe Electricity industry||EU.ELECTRICITY||1688.48||1||1||2.20613||73.9869||-1.26||0.77||-3.49||0.25464|
|US Electricity Credit Spreads||US.ELECTRICITY.CR||122.48||-1||-0.75||-1.02557||29.7481||0.03||3.37||2.26||0.02447|
|Europe Electricity Credit Spreads||EU.ELECTRICITY.CR||97.18||-0.5||-1||-0.92664||36.9312||0.15||-0.35||0.07||-0.04886|
Electricity industry News
Electricity industry Analysis
MacroVar monitors the performance, risk, trend and momentum of the Electricity industry by examining the stock and credit performance of major Electricity companies across the US, Europe, Eastern Europe and Asia Pacific. Electricity Stock performance is monitored by analyzing STOXX equity indices of major Electricity companies while Electricity credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Electricity high yield corporate bond market.
MacroVar also monitors fundamental indicators closely linked to the Electricity sector published monthly including analysis of sector specific PMI indicators, components of Manufacturing & Services PMI and Economic Sentiment Indicators analysis.
MacroVar also monitors other factors closely related to the Electricity industry like closely related financial markets or macroeconmic indicators.
MacroVar estimates the following signals:: Electricity momentum, Electricity trend, Electricity oscillator, Electricity RSI and Electricity returns.
Electricity industry Description
The Electricity industry includes the sectors of Conventional Electricity and Alternative Electricity.
The subsector of Conventional Electricity includes companies generating and distributing electricity through the burning of fossil fuels such as coal, petroleum and natural gas, and through nuclear energy.
The subsector of Alternative Electricity includes companies generating and distributing electricity from a renewable source. Includes companies that produce solar, water, wind and geothermal electricity.
Electricity industry MomentumMomentum is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.
MacroVar Electricity momentum signal ranges from -100 to +100. The Electricity momentum signal is derived as the mean value from 4 calculations for the Electricity . The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Electricity return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1. Electricity momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Electricity momentum signal moves from positive to negative value or vice-versa.
Electricity industry trendElectricity trend signal ranges from -100 to +100. Electricity trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Electricity Closing price vs Electricity moving average (MA) calculation: If Electricity is greater than Electricity MA value is +1, else -1, 2. Electricity Moving average slope calculation: if current Electricity moving average is higher than the previous MA, Electricity upward slope +1, else -1
Electricity trend model can be used as a trend strength indicator. Electricity trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Electricity trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The Electricity 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Electricity is in an uptrend when Electricity price is higher than the 52-week moving average and the Electricity 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the Electricity oscillator and Electricity RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
Electricity industry oscillatorThe Electricity oscillator estimated by MacroVar is the z-score of the currentElectricity price versus Electricity 1-year simple moving average price. The formula for the Electricity oscillator is:
Electricity oscillator = (Current Price – 250 trading days Electricity simple moving average price) / (250 days Electricity price standard deviation)
Electricity oversold conditions
Electricity is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Electricity is oversold it is often due for a rebound. Values of the Electricity oscillator lower than -2.5 signify oversold conditions. It must be noted that the Electricity oscillator must be analyzed ibn conjunction with the rest ofElectricity quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the Electricity RSI.
Electricity overbought conditions
Electricity is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Electricity is overbought it is often due for a correction. Values of the Electricity oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Electricity quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.
Electricity RSI indicatorThe RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when Electricity is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringElectricity uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.
Electricity industry returnsMacroVar calculates Electricity returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:
Electricity returns = (Electricity Closing Price – Electricity Previous Price)/(Electricity Previous Price)