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Technical Outlook :  — Neutral

• We remain neutral on a technical basis, however, our speculative hedge funds analysis (reserved for our premium clients) is beginning to hint at a big move on the horizon.
• Momentum is negative.  However, given the tight trading range and relatively strong support at $7.00/MMbtu we believe a downside breakout is unlikely at this time.
• Resistance above at $8.00/MMBtu; support below at $7.00 and $6.50/MMBtuMMBtu (basis April).

EIA Storage Report — Slightly Bearish
116 Bcf Withdrawal - Consuming East: -92 Bcf Consuming West: -7 Bcf Producing Region: -17 Bcf

• ESAI is forecasting a 116 Bcf withdrawal for the week ending March 3rd. Despite the large withdrawals of February, inventories are still 11.5% above the 5-year average
• Despite the frigid weather moving into the Consuming East this week, a major change is upon us. Spring is at hand. In fact downright balmy temperatures are forecast to move into the Consuming East next week. Highs approaching, and in some cases exceeding, 60 degrees are forecast to move into Washington DC, Philadelphia, NYC. Boston is expecting highs in the 50’s. Despite the warmer weather, however, prices have already discounted the slowdown in heating demand. Nuclear maintenance season has begun, and will be in full swing soon, boosting demand from power generation.