TECHNICALS-US oil may retest resistance at $60.91

SINGAPORE, Jan 22 (Reuters) - U.S. oil CLc1 may retest resistance at $60.91 per barrel, a break above which could lead to a gain into $61.17 to $61.63 range.

The contract is riding on a wave c, which may either complete around resistance at $61.17 or extend into a range of $61.91 to $62.37.

A retracement analysis on the uptrend from $54.98 to $62.38 reveals a break above the 23.6% level of $60.64. The break opened the way towards $61.30.

Once the contract rises to $61.30, it is likely to extend gains into $61.91 to $62.37 range. Immediate support is at $60.44, a break below which could trigger a drop to $59.98.

On the daily chart, the drop from $62.36 is classified as a pullback towards a falling channel. Given that the market has broken above resistance at $60.19, the pullback is considered over.

The contract may retest resistance at $62.28, a break above which could open the way towards $63.97 to $65.65 range.

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.