On NYMEX prices closed last week at $84.87. Prices rose to a seven month high on speculation demand may be recovering after manufacturing sectors in US, China and Europe showed an expansion. Moreover non farm payrolls data also showed jobs being added in March which was the highest in almost three years. With better figures coming out in the recent past the momentum for the market should be carried forth today as well. OUTLOOK: Economic data from US today may show an expansion in the services sector while a decline in pending home sales is expected to weigh on the market. Overall during the day the momentum for the market should be on the higher side driven by positive sentiment over the recovery in the economy. However a slow down in the housing sector may result in prices declining a little in the evening. TECHNICAL RECOMMENDATIONS April crude oil futures continued previous day rally after making a high of 3818 it settled at 3800. We expect market to trade higher for the day. The resistances are at 3820 and then 3860 levels. On lower side, supports are at 3800 and then 3775 levels. We expect market to trade higher and recommend buying at lower levels.

Source