TECHNICALS-US oil may retest support at $60.62

SINGAPORE, Jan 26 (Reuters) - U.S. oil CLc1 may retest support at $60.62 per barrel, a break below which could open the way towards the $59.89 to $60.17 range.

The contract failed to break resistance at $61.29. The failure was partially due to this barrier, but mainly due to the completion of the five‑wave cycle from $58.97.

The rise from $58.70 has been characterized by a zigzag pattern, with each strong surge followed by a sharp pullback. A retracement analysis on the rise from $58.97 reveals a target zone of $59.89 to $60.17.

A break above $61.29 may lead to a gain toward $62.37. On the daily chart, the contract is poised to test resistance at $62.12, as it has cleared a lower resistance at $60.13.

A break could open the way toward $63.73 to $65.34 range, while a failure, especially a break below $58.76, may increase the chance of the downtrend from $70.55 to resume.

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.