Crude oil ended higher fueled by encouraging economic data, the weak dollar and technical strength that sparked traders to cover short positions. China's demand for foreign oil will stay near record levels in coming months due to a recovering economy, rising refining and stockpiling capacity. Now support for the crude is seen at 3478 and below could see a test of 3401. Resistance is now likely to be seen at 3597, a move above could see prices testing 3639.

Trading Ideas:

Crude trading range is 3500-3600.

Crude oil ended higher fueled by encouraging economic data and weak dollar

China's demand for foreign oil will stay near record levels in coming months

Today crude oil inventories: Exp: 0.4M Prev: -3.9M

BUY CRUDE FEB ON DIP @ 3500-3510 SL 3470 TGT 3542-3570-3595.MCX