TECHNICALS-US oil may test support at $60.03

SINGAPORE, Jan 27 (Reuters) - U.S. oil CLc1 may test support at $60.03 per barrel, a break below which could open the way towards $59.62.

A five-wave cycle from $58.97 has completed. Given that the current correction failed to stop around the bottom of the wave 4 around $60.60, the correction may extend to the bottom of the wave 2 around $59.60.

A rising channel suggests the same target as well. The rise from $58.70 has been characterized by a zigzag pattern, with each strong surge followed by a sharp pullback.

What is unfolding could be the repetition of this pattern. On the daily chart, the contract failed to break a resistance at $62.12 again.

The failure suggests an incomplete correction from $62.36, which may extend toward $58.76 again.

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

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