Nymex Crude oil Distribution phase
NYMEX crude oil rallied nicely in February and March. After hitting a high of $42.49, it witnessed a short term correction, which found support near the junction of 40 DEMA, daily lower Bollinger Band and the 38.2% retracement mark. Crude oil advanced once again and made another high of $50.92. However, it could not sustain at higher levels and retreated. It has now broken a crucial rising trend line and has entered a correction mode. Structurally, it seems to have formed a distribution triangle. On the downside, $45.83 and $44.11 will be the key levels to watch. On the other hand, $50 -$51.67 will act as key resistance zone on the way up.