Oil fell, heading for its third weekly decline in a month, after China’s inflation fanned speculation the world’s biggest energy consumer will take steps to cool its economy and U.S. crude supplies unexpectedly rose.
Futures, which are down 2.3% for the week, dropped after China said inflation was 4.6% in Dec as the economy grew 9.8% in the fourth quarter. Prices also slid after stock for crude supplies rose for the first time in seven weeks.
China’s economic expansion exceeded the 9.4% as compared with a 9.6% annual gain in the previous three months.
The country’s central bank raised interest rates twice in 2010 and increased bank-reserve requirements on Jan. 14 now technically market is trading in the range as RSI for 18days is currently indicating 51.79, where as 50DMA is at 4074.48 and and crude is trading above the same and getting support at 4082 and below could see a test of 4038 level, And resistance is now likely to be seen at 4190, a move above could see prices testing 4254.
Trading Ideas:
Crude trading range is 4038-4254.
Oil fell after China’s inflation fanned speculation to cool its economy and U.S. crude supplies unexpectedly rose.
U.S. crude stockpiles increased 2.62 million barrels to 335.7 million, the Energy Department report showed
OPEC’s Badri said market is well supplied and watching market trend as speculators causing oil price to rise.
SELL CRUDE FEB BELOW 4115 SL 4138 TGT 4100-4082-4056.MCX
