Crude oil fell as a stronger dollar reduced the appeal of commodities and on speculation that U. S. inventories increased. Oil dropped almost 320 per bbl last week but on the last trading day market bounce on profit booking and short covering. Prices also decreased on speculation that a government report will show a third consecutive gain in crude stockpiles. An Energy Department report tomorrow will probably show that crude oil supplies climbed 2.2 million barrels in the week ended Jan. 15 from 331 million the prior week. Now technically market is trading in the range as RSI for 18days is currently indicating 40.48, where as 50DMA is at 3591.22 and crude is trading below the same and getting support at 3352 and below could see a test of 3331 level, And resistance is now likely to be seen at 3386, a move above could see prices testing 3399.

Trading Ideas:

Crude trading range is 3331-3399.

Crude oil fell as a stronger dollar and on speculation that U. S. inventories increased.

Prices also decreased on speculation that a report will show a 3rd consecutive gain in crude stockpiles.

Crude now getting support at 3345 level and resistance at 3398.

SELL CRUDE FEB @ 3370 SL 3392 TGT 3356-3338-3316. MCX

CRUDE $ IS TRADING AT : 71.61$