Crude oil declined on concern that the recovery in fuel demand may stall in the U. S., the biggest energy-consuming nation. Oil pared yesterday’s gain as U. S. equities dropped and the Dow Jones below 10,000 for the first time since November amid concern that deteriorating European govt finances will derail the economic recovery. Prices also came under pressure on market speculation that a rise in crude supplies can be seen this week also. The dollar rose, reducing the appeal of commodities as an inflation hedge for investors, now technically market is trading in the range as RSI for 18days is currently indicating 40.25, where as 50DMA is at 3589.68 and crude is trading below the same and getting support at 3334 and below could see a test of 3303 level, And resistance is now likely to be seen at 3391, a move above could see prices testing 3417.

Trading Ideas:

Crude trading range is 3303-3417.

Crude oil declined on concern that the recovery in fuel demand may stall in the U. S

Benchmark crude for March delivery added 70 cents to settle at US$71.89 a barrel on the Nymex

Energy prices can climbed as another winter storm is expected to dump even more snow on the East Coast.

SELL CRUDE FEB @ 3370 SL 3402 TGT 3352-3326-3312.MCX