TECHNICALS-US oil may retest resistance at $59.63

SINGAPORE, Jan 12 (Reuters) - U.S. oil CLc1 may stabilise around support of $58.72 per barrel and retest resistance at $59.63.

A high-low bottom developing from December 16, 2025 low of $54.98 has been more or less confirmed, suggesting a target of $62.

The pattern also indicates an extension of the wave C from $55.77 toward its 161.8% projection level of $62.01. The resistance at the 100% level of $59.63 temporarily stopped the rise and caused a correction which may be limited to the support zone of $58.15-$58.72.

A break above the immediate resistance at $59.10 would suggest the continuation of the wave C. On the daily chart, the contract climbed above a falling channel and a resistance at $58.12.

A duplicated channel points to a target of $63.33, a realistic target will be $61.64, will be confirmed when the market breaks $59.56.

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her professionals or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.