For bull traders yesterday’s natural gas futures session was acase of “no news is bad news” as prices chopped lower in a raresub-50,000 volume session. As usually is the case the promptmonth-September-took the biggest hit, slipping 4.5 cents to finishat an even $2.70.

“Technically we are still in a bull market, but fundamentally weare kinda lost,” a Dallas based marketer said. “In the short-term Ilook for us to bounce around the $2.65-70 level until we get abetter fundamental picture.”

Anther trader contacted by NGI said Monday’s revised six- to10-day forecast applied downward pressure on the market. Accordingto the National Weather Service (NWS) temperatures are expected tocontinue to moderate, bringing below-normal temperatures across ahuge section of the Mid-Atlantic and Southeast. However, the areasof East Texas and Oklahoma, Louisiana, and Arkansas, along withmuch of the West Coast will continue to experience above-normaltemperatures the NWS said.

But despite the somewhat bearish weather forecast, NewMexico-based Kase and Company looks for “one more push higher [fornow].” The group expects prices to make a shot at a double top highat $2.785 with possible extensions to the mid- $2.80s or $2.935.But be on guard for a collapse, they warn, citing a secondaryscenario that has prices moving below support in the mid- $2.50s tothe “major $2.46 target area.” Kase gives a 60/40 weight to theirprimary (bullish) and secondary (bearish) outlooks.

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