Oil prices slid more than 2 percent retreating from a 27-month high and dropping below $90 a barrel, as profit-taking struck the commodities complex following a rally over the thin holiday trading period. Some additional pressure came from a rebound by the dollar, which turned positive on an improving U.S. economic outlook. Gains in fuel stockpiles outpaced a drop in the nation's crude inventories last week. Now support for the crude is seen at 3987 and below could see a test of 3934. Resistance is now likely to be seen at 4124, a move above could see prices testing 4208.

Trading Ideas:

Crude trading range is 3934-4208.

Oil prices slid more than 2 percent as profit-taking struck the commodities complex.

Crude looks to test support at 4016 and resistance is seen at 4072

Today crude oil inventories: Exp: -1.4M Prev: -1.3M

BUY CRUDE JAN ABV 4048 SL 4028 TGT 4065-4090.MCX

Crude $ is Trading at : 89.15$