Crude oil futures extended losses on Monday, falling below USD99 a barrel and on MCX settled down by -0.59 at 4420 just managed to hold support at 4370 level as fears over a possible U.S. sovereign debt default sparked concerns over the short-term energy demand outlook from the world’s largest oil consumer. Talks between Democrats and Republicans from the U.S. Congress broke down over the weekend, prompting White House Chief of Staff Bill Daley to warn that there would be a "few stressful days" ahead for financial markets, as the deadline to raise the USD14.3 trillion debt ceiling was only nine days away. Any budget plan to raise the debt limit must pass both the Republican-controlled House and the Democratic-run Senate and be signed by President Obama. Rating agency S&P's last week reiterated that there was a 50-50 chance the U.S. AAA credit rating could be cut within three months if a deal isn’t accompanied by a “credible solution” on the debt burden. Now technically market is trading in the range as RSI for 18days is currently indicating 51.17, where as 50DMA is at 4400.12 and crude is trading above the same and getting support at 4392 and below could see a test of 4363 level, And resistance is now likely to be seen at 4447, a move above could see prices testing 4473.

Trading Ideas:

Crude trading range is 4363-4473.

Crude oil ended lower as investors turned cautious due to stalled talks in Washington

Trading volume was 41% below the 30-day average,suggesting investors were keeping to the sidelines

Crude looks to test support at 4392 and resistance is seen at 4447.