Crude recovered yesterday and settled with the gain of 0.15% that is at 3973 level as got support after Egypt's President Hosni Mubarak said he would transfer the reins of power to his vice president, but would not step down. The speech sparked more worries that Egypt's unrest would spread across the Middle East and disrupt oil supply movement. Yesterday session was volatile where we have seen crude had traded in the both direction testing support and resistance as U.S. initial jobless claims dropped more than expected, also rising OPEC output will make comfortable oil stocks in developed nations should limit a further spike in oil prices despite demand hitting an all-time high later this year. Now technically market is trading in the range as RSI for 18days is currently indicating 41.47, where as 50DMA is at 4113.24 and crude is trading below the same and getting support at 3930 and below could see a test of 3886 level, And resistance is now likely to be seen at 4021, a move above could see prices testing 4068.

Trading Ideas:

Crude trading range is 3886-4068.

Crude posted slight gains after Egyptian President Hosni Mubarak declined to resign

Crude oil looks to get resistance at 4000 and support is seen at 3944 level.

The global oil supply rose 0.5 mbd in January, to 88.5 mbd, on higher OPEC crude and NGL output