TECHNICALS-US oil may test resistance at $59.85

SINGAPORE, Jan 19 (Reuters) - U.S. oil CLc1 may test resistance at $59.85 per barrel, a break above which could open the way towards $60.82.

The contract managed to stabilise twice around a support of $59.07. The stabilisation suggests the completion of a completed correction from $62.38 and the formation of a bottom.

The pattern will be confirmed as a double-bottom, once the market stands firm above $59.85. It will suggest a target of $60.82.

A break below $59.07 may trigger a fall to $58.29. On the daily chart, the drop from $62.36 is classified as a pullback towards a falling channel.

The pullback may be completing in the zone of $58.12 to $59.56. A close of the market above $59.56 would strongly indicate the completion.

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.