TECHNICALS-US oil may retest support at $58.68

SINGAPORE, Jan 21 (Reuters) - U.S. oil CLc1 may retest support at $58.68 per barrel, driven by a wave c.

Identified as the third wave of a three-wave cycle from $62.38, this wave is capable of travelling far below the bottom of the wave a around $58.68.

A projection analysis reveals a target zone of $56.99 to $58.40. Resistance is at $60.13, a break above could lead to a gain at $60.67.

On the daily chart, the drop from $62.36 is classified as a pullback towards a falling channel. With the failure of the contract to break resistance at $60.19, the pullback may extend toward $56.81.

Strategically, this target of $56.81 will be confirmed when the market breaks $58.76.

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.