TECHNICALS-US oil biased to retest support at $59.06

SINGAPORE, Jan 23 (Reuters) - U.S. oil CLc1 is biased to retest support at $59.06 per barrel, a break below which could open the way towards the $58.09 to $58.63 range.

The deep fall on Thursday suggests an incomplete correction from $62.37. The correction consists of three waves. The current wave c is capable of travelling into a range of $57.23 to $58.63.

The bounce triggered by the support at $59.06 looks like a pullback towards a rising trendline. The pullback may end around $60.03, to be followed by a fall.

A break above $60.03 could lead to a gain into the $60.37 to $60.90 range. On the daily chart, the market is experiencing a pullback towards the lower channel.

Most likely this pullback would extend towards $56.81. It must be noted that the upper channel suggests a target zone of $62.28 to $63.97. The uptrend is expected to resume upon the completion of the pullback.

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.