Crude Oil marginally rose and closed with a gain of +0.20% at 5390 as after disappointing Chinese manufacturing data sparked talk Beijing will loosen monetary policy to spark more robust growth, while sentiments continued to build the US Fed will stimulate the US economy also pushed the commodity higher. The Chinese HSBC Manufacturing PMI disappointed investors this week, hitting 47.6 in August, a tenth successive month-on-month deterioration in Chinese manufacturing operating conditions and the lowest reading since March 2009. The news sparked talk Beijing will loosen monetary policy to spur more robust growth rates, possibly though cutting interest rates or lowering banking reserve requirements. The Fed will hold a monetary policy meeting on Sept. 11-12, and many investors in global energy markets continue to believe the US central bank will announce a third round of bond buying. Monetary stimulus tools tend to weaken the dollar by design, pushing down interest rates and sending commodities prices rising, especially oil, which shoots up on hopes for sustained demand that comes from a jolted economy and also due to a weaker dollar, which makes the commodity a nicely-priced asset in the eyes of investors holding other currencies. Now technically market is getting support at 5350 and below could see a test of 5309 level, And resistance is now likely to be seen at 5418, a move above could see prices testing 5445.

Trading Ideas:

Crude trading range for the day is 5309-5445.

Crude edged up supported by hopes central banks would act soon to revive the global economy.

Beijing may cut the reserve requirement ratio this month, which could contribute to oil gains

China's official factory purchasing managers' index (PMI) fell to a lower-than-expected 49.2 in August