IRA EPSTEIN & COMPANY

223 West Jackson, 7th Floor, Chicago, Illinois

(August 14, 1997) NATURAL GAS: HIGHLIGHTS–Unusually cool weather throughout the northern Plains and Midwest provided justification for continuance of last week's upside breakout to a new contract high.

TECHNICAL ANALYSES–TRENDS: Long-term erratic, intermediate sideways-up, short-term erratic.

FUTURES: Close 2.560 [5-day change = +.028], resistance 2.650, 2.670, support 2.560, 2.535, 2.475, 2.445.

FUNDAMENTALS–BULLISH: Supplies are considered slender to tight. Cool weather concerns are circulating as some weather forecasters have called for below normal temperatures.

BEARISH: The impact of a very strong El Nino pattern in the eastern Pacific could bring warmth into the north-central U.S.

RECOMMENDATIONS–POSITION RECAP: Long at 2.395 on 8/4 breakout; added at 2.470 on 8/6. Stopped out at 2.620 on 8/12.

NEW: Buy at market. Exit at first signal (trailing stop, parabolic or Exit Rule #2).

Ernest Margraf

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Last updated on 08-15-97

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