Crude oil price finally broke out from the range it has been in for nearly three weeks. The strong upside breakout pushed the commodity toward a new one-year high.
A pullback is likely to occur in the near term toward the upper range near 53.77. Price action will need to break out strongly above the 55.00 level in order to maintain the upside.
Given the current momentum, the downside looks a bit limited for the moment.
However, this could change if oil prices lose the 53.77 support level. It would once again put price action back within the sideways range.
