Commodity Trading Tips for Crude Oil by KediaCommodity

Crude-OilCrude Oil remained firm as investors bought the commodity on sentiment that the US economy is poised to grow based on Fed comments made earlier. A growing economy needs more fuels to expand. In the US, the FOMC, the Fed's monetary policy body, left rates unchanged near zero but offered cautious optimism over the fate of the world's largest economy. "The Committee expects economic growth to remain moderate over coming quarters" the FOMC said in a statement. "Consequently, the Committee anticipates that the unemployment rate will decline gradually toward levels that it judges to be consistent with its dual mandate." The news was somewhat bullish for crude, which rises amid economic expansion. While the FOMC statement made no mention of a need for stimulus, yet Beranke said he couldn't rule out the use of monetary easing measures to ensure recovery. "We remain entirely prepared to take additional balance sheet actions if necessary to achieve our objectives," Bernanke said at a news conference after the FOMC concluded its April monetary policy meeting. "Those tools remain very much on the table and we will not hesitate to use them should the economy require that additional support." Now technically market is trading in the range as RSI for 18days is currently indicating 59.62, where as 50DMA is at 5416 and crude is trading above the same and getting support at 5479 and below could see a test of 5454 level, And resistance is now likely to be seen at 5524, a move above could see prices testing 5544.

Trading Ideas:

Crude trading range for the day is 5454-5544.

Crude oil remained firm as investors bought on sentiment that US economy is poised to grow based on Fed comments

Oil will be supported by Iranian tensions even as top producers pump at near full capacity

Seaborne oil exports from OPEC,will fall by 20,000 barrels per day in the four weeks to May 12