Crude gained yesterday almost near to 1 percent by an upbeat government global oil demand growth estimate for this year and as improving technical support spurred further fund buying. The U. S. Energy Information Administration raised its 2010 forecast by 120k barrels per day to 1.2 million bpd in its latest outlook. Crude provided most of the upside leadership despite the fact that cold northeast weather expectations were widely mentioned as the fundamental driver behind the strength, now technically market is trading in the range as RSI for 18days is currently indicating 48.01, where as 50DMA is at 3589.78 and crude is trading below the same and getting support at 3411 and below could see a test of 3357 level, And resistance is now likely to be seen at 3502, a move above could see prices testing 3539.

Trading Ideas:

Crude trading range is 3465-3489.

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

Inventory has been postponed to Friday due to snow fall in us.

U. S. EIA raised its 2010 forecast by 120k barrels per day to 1.2 million bpd in its latest outlook.

BUY CRUDE FEB @ 3440-3450 SL 3418 TGT 3472-3490-3512.MCX

CRUDE $ IS TRADING AT : 74.53$