Oil fell for the third day this week settled at -2% at 4449 after the index of U.S. leading indicators dropped for the first time in 10 months in April and sales of existing U.S. homes declined, signals that fuel demand may weaken as the economy struggles to recover. Oil tumbled 1.7 percent as the index, the New York-based Conference Board’s gauge of the economic outlook for the next three to six months, unexpectedly decreased by 0.3 percent after a revised 0.7 percent gain in March. Japan’s economy shrank more than estimated in the first quarter, a government report showed. The IEA trimmed its 2011 global oil-demand forecast for the first time this year in a report last week, saying the year’s price rally is beginning to weigh on consumers, particularly in North America. Now technically market is trading in the range as RSI for 18days is currently indicating 40.68, where as 50DMA is at 4791.3 and crude is trading below the same and getting support at 4399 and below could see a test of 4348 level, And resistance is now likely to be seen at 4517, a move above could see prices testing 4584.

Trading Ideas:

Crude trading range is 4404-4618.

Crude fell as disappointing economic data fueled worries about oil demand

Crude looks to test support at 4447 and resistance is seen at 4554.

IEA raised the possibility of releasing emergency stockpiles to cool prices if supply not increased