The natural gas futures market made it a ‘perfect ten’ yesterdayby trading within a tight 14-cent range for the tenth consecutivetrading session. The August contract showed promise early, racingout to a strong start and posting a $2.239 high. That, however,would be the best the market could do Tuesday. It then wilted underselling pressure in the afternoon. The prompt month finished at$2.198, down 0.9 on the day.

A Dallas-based trader viewed the market’s move toward resistanceat $2.25 Tuesday as a seller’s opportunity. “Prices have found acomfort zone between $2.13 and $2.23. This is a day traders’market-sell rallies and buy dips,” she advised. And what aboutprices in the intermediate- to long-term? “Bullish,” she answers,noting that almost any change in the fundamental outlook could havea positive price impact. “Right now, the market has nothing to sinkits teeth into. Weather is benign and there are no storms to speakof in the Gulf [of Mexico]. But if the weather heats up or if weget some waves with potential in the Caribbean then this thingcould take off,” she speculated.

The market may not have to wait for the weather to get a bullishpush. Many traders feel the weekly American Gas Association storagereport to be released this afternoon could bring someprice-constructive news. Preliminary estimates call for aninjection of 55-75 Bcf to fall short of last year’s 79 Bcf refill,thus increasing the year-on-year deficit, which now stands at 17Bcf.

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