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NATURAL GAS closed sharply higher due to short covering on Monday ending a threeday correction off last week's high. The highrange close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI have turned bearish signalling that sideways to lower prices are possible nearterm. If it renews the decline off July's high, the 75% retracement level of the AprilJuly rally crossing is the next downside target.