Crude dropped as the dollar--but not oil demand--received a boost from the quickening pace of the U. S. economic recovery. Between Friday's stronger-than-expected pickup in U. S. retail sales and last week's surprise drop in the unemployment rate, the economic recovery is starting to put downward pressure on oil prices.

Now support for the crude is seen at 3246 and below could see a test of 3236. Resistance is now likely to be seen at 3275, a move above could see prices testing 3294.

Trading Ideas:

CRUDE TRADING RANGE IS 3200-3320.

CRUDE OIL ENDED DOWN AS OIL DEMAND RECEIVED A BOOST

BUY CRUDE @ 3220-3230 SL 3195 TGT 3248-3274-3290.MCX

SUPPORT FOR THE CRUDE IS AT 322 AND RESIST IS AT 3286.

THE IEA RAISED ITS 2010 OIL DEMAND GROWTH FORECAST BY 120,000 BARRELS PER DAY