NG Breaks Out, Targets $3.00 Amid Weather-Driven Demand

Natural Gas (NG) has broken out of its consolidation zone and is heading towards new highs. On April 29, NG hit a low near $2.615, marking a capitulation point. Since then, it has been building higher lows, with the April 30 impulse bar launching price through the $2.75 zone.

The 4h chart shows that NG reclaimed the $2.85-$2.88 shelf, which was resistance in early May, and broke above it today with expanding volume. On the 1h chart, the May 11 session is a textbook acceleration sequence, where price opened near $2.80, broke through $2.85 at 07:00 on high volume, and held above the prior resistance shelf.

The recent +5.19% move with elevated volume has been flagged as bullish across various feeds, consistent with a weather-driven or LNG export demand catalyst. The COT report shows non-commercials sitting at a large net short of -166k contracts, which could accelerate the move if they cover their positions.