Thursday, 08 March 2012
Price movements Summer’12 NBP Gas
The graph above shows the price movements of the Summer’12 NBP gas contract from Oct’09 through to Jan’12.
The red line represents the price the Summer’12 contract closed at on each particular day throughout the period given.
The 20 day moving average is the price generated by taking the average of the previous 20 days closing prices from a particular day.
The line in black will be a smoother line than the actual price track (red line) as being an average it is not affected by freak spikes or lulls in the market.
This is useful in spotting trends in the market as it is less sensitive to large market fluctuations.