Crude oil yesterday bounced and closed up by almost 2% on base metal rise off setting the bearishness in the market but for today's session oil again look to have some pressure as industry report showed crude and gasoline stockpiles in the U.S. increased last week, indicating demand from the largest energy consuming country may be weak. Oil declined in the morning session in electronic session after the American Petroleum Institute said crude inventories rose to the highest since October last year and gasoline supplies reached the highest since March 1999. An Energy Department report due Feb. 12 may also show stockpiles increased, now technically market is trading in the range as RSI for 18days is currently indicating 45.8, where as 50DMA is at 3589 and crude is trading below the same and getting support at 3377 and below could see a test of 3318 level, And resistance is now likely to be seen at 3472, a move above could see prices testing 3508.

Trading Ideas:

Crude trading range is 3318-3508.

Crude oil yesterday bounced and closed up by almost 2% on base metal rise off setting the bearishness.

Inventory Expectations Crude up +1.5 mbbl, gasoline up +500k bbl, distillate down -1.5 mbbl.

Energy Department report due Feb. 12 may also show stockpiles increased.

SELL CRUDE FEB BELOW 3426 SL 3445 TGT 3405-3386-3365.MCX