WTI crude oil is breaking outside of its range with support at $81.85 per barrel and resistance around $83.75 per barrel. Price could be in for a climb that’s the same height as the rectangle from here.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is likely to gain traction. Price is moving above both SMAs, so these could hold as dynamic support on dips. However, the gap between the indicators is narrowing to signal weakening bullish pressure.

Stochastic is indicating overbought conditions or exhaustion among buyers, and turning lower would mean that sellers are taking over. RSI also reached the overbought area to suggest that buyers could take a break.

In that case, crude oil might still pull back to the broken range resistance for a retest before heading further up.

Crude oil remains strongly supported as demand is accelerating while supply remains limited. The energy crunch is still in play in parts of Europe and China, as output is crippled by weather disturbances.

The upcoming inventory reports from the API and EIA would likely influence crude oil price action midweek. Another draw in stockpiles would confirm that purchases are rising as businesses resume normal operations while output is struggling to keep up.

It’s might worth keeping tabs on top-tier events that could impact sentiment as well. In particular, there are three central bank decisions lined up, with the BOC likely to keep tapering asset purchases and the BOJ and ECB likely to stand pat.

Also, the US has its advanced GDP release and core PCE price index lined up later in the week, possibly influencing Fed interest rate expectations then. Weak results could keep stimulus in place, which would be positive for businesses and commodity prices.