WTI oil breaks above the 53.00 level

WTI oil breaks above the 53.00 level and goes back to the congestion area that it created at the beginning of the year between the 52.00 level and the 54.00 level. The rally on WTI oil has been really spectacular from the 47.00 level, but it has been caused mostly by the geopolitical tensions surrounding the production and distribution of crude in the Middle East. On the daily chart we can see that the price of oil may continue heading higher, maybe trying to visit the 54.00 level. But if the bullish trend is to be kept in the mid-term, then WTI oil must break above its latest high around the 55.20 level. Due to the fact that the commodity is clearly over-extended to the upside, it may try to pull back down and visit the 52.00 level, which could act as support. Below the 52.00 level, the 55 day EMA (purple line) around the 51.10 level may also act as support, followed by the 50.00 round number level.