Crude dropped nearly -1% to settled at 5316 as weak economic data out of the euro zone and China countered hopes for near-term stimulus measures in the US. Oil prices trimmed gains after a report earlier showed that manufacturing activity in the euro zone rose more than expected in August, but remained in contraction territory for the 12th consecutive month, while service sector activity slumped to a two-month low. A separate report showed that manufacturing activity in China slumped to a 9-month low in August, adding to concerns over a slowdown in economy. Oil traders often use manufacturing numbers as indicators for future fuel demand growth. But prices remained supported after data showed that new home sales in the US rose more than expected in July. Prices have been well-supported amid growing expectations that central banks around the world will soon announce fresh stimulus measures to help spur weak global growth. Renewed fears over escalating violence in Syria and lingering tensions between Iran and the West have also been supporting prices in recent weeks. Now technically market is getting support at 5274 and below could see a test of 5231 level, And resistance is now likely to be seen at 5392, a move above could see prices testing 5467.

Trading Ideas:

Crude trading range for the day is 5231-5467.

Crude dropped as weak economic data out of Euro and China countered hopes for near-term stimulus measures in U. S.

Disappointing data from China signaled that the slowdown had extended into the third quarter.

An upcoming maintenance-related slide in North Sea oil production and heightened Middle East tensions supported prices