TECHNICALS-US oil may extend loss into $60.74-$61.85 range

SINGAPORE, Feb 2 (Reuters) - U.S. oil CLc1 may extend its loss into $60.74 to $61.85 per barrel, as suggested by a retracement analysis and the channel technique.

The contract has broken a support at $62.74, the 50% retracement of the uptrend from $58.96 to $66.52. The break opened the way toward the $60.74 to $61.85 range.

The lower channel, which was duplicated from the upper channel, suggests the target of $61.85 as well. A break above $62.74, now a resistance, may lead to a gain at $63.63.

On the daily chart, a five-wave cycle from $54.98 seems to have completed around a resistance at $65.34. The contract is expected to retrace toward the bottom of the wave d around $58.76.

It is not very clear that the uptrend from $54.98 would resume. A further development of the chart is needed to evaluate the trending signals.

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.