Crude oil traded in the range on last trading day as investors sold the commodity for profits. Oil soared last week after the Fed announced plans to stimulate the economy via QE3. Late last week, the US Fed announced plans to buy $40bn in mortgage backed securities a month from banks on an ongoing basis until the economy improves, a policy measure known as QE3. The Fed also said it would continue with its OT program that sees the US central bank selling short-term Treasury holdings in the market while simultaneously buying longer term instruments with the aim of keeping interest rates low. The Fed also said conditions meriting low interest rates will likely last through mid-2015. Monetary stimulus measures in the US often are bullish for commodities. Such accommodative policies tend to weaken the dollar by design and send 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. Talk that Saudi Arabia remains committed to keeping prices low by upping supply should the demand arise also kept crude softer, albeit in choppy trading. Now technically market is getting support at 5330 and below could see a test of 5325 level, And resistance is now likely to be seen at 5339, a move above could see prices testing 5343.

Trading Ideas:

Crude trading range for the day is 5325-5343.

Crude dropped as concerns about the effect on the economy of high fuel costs tempered hopes for stronger demand

Highlighting the economic risk from surging oil prices, a jump in gasoline costs pushed up U. S. consumer prices

Dispute over Iran's nuclear program kept geopolitical risk of supply disruption in North Africa and Middle East in focus