Not forecasts calling for cooling temperatures, nor record lowsset in the nearby heating oil contract could entice the natural gasfutures market to break out of its month long trading rangeTuesday, as many traders decided instead to play it safe and waitfor a more clearly defined price signal. The March contract drifted1.2 cents lower to settle at $1.795 after being limited to a narrow5-cent trading range.

“This market remains between a rock and a hard place,” commentedone source, who said continued bearish fundamentals are being heldin check by the market’s unwillingness to add to already sizeablenet short positions. “What this market needs is blast of reallycold weather to take a chunk out of the year-on-year storagesurplus,” he continued.

And while the market will receive updated storage figures thisafternoon when the American Gas Association releases its weeklyreport, few think it will show a large enough draw to impact thesurplus. Preliminary predictions are calling for a withdrawalbetween 90-120 Bcf, which are in line with the 93 Bcf seen lastyear.

In daily March technicals, support is seen at previouslows of $1.725. Meanwhile, the market will encounter selling at the40-day moving average of $1.85, ahead of more stalwart resistanceat $1.93 a chartist said.

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