TECHNICALS-US oil may test support at $58.12

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SINGAPORE, Jan 16 (Reuters) - U.S. oil CLc1 may test support at $58.12 per barrel, a break below which could open the way toward $56.18.

The pullback toward a falling channel may extend. It observes a series of projection levels on the downtrend from $70.48.

Given that the market has broken support at $59.56, it may test the next support of $58.12, a break below could trigger fall to $56.18.

On the hourly chart, the market is making its third attempt to break the support at $59.07, which looks unlikely to hold. The next support is at $58.29, which is likely to trigger a decent bounce.

A break above $59.85 may lead to a gain to $60.82.

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.