TECHNICALS-US oil may extend loss to $60.74

SINGAPORE, Feb 3 (Reuters) - U.S. oil CLc1 may extend its loss to $60.74 per barrel, as suggested by a retracement analysis and the channel technique.

The contract has broken a key support at $61.85, the 61.8% retracement of the uptrend from $58.96 to $66.52. The break opened the way toward $60.74.

Duplicated from the upper channel, the lower channel suggests the target of $60.74 as well. A break above $62.74 may lead to a gain at $63.63.

On the daily chart, a five-wave cycle from $54.98 has completed around a resistance at $65.34. The contract is expected to retrace toward the bottom of the wave d around $59.02.

A break below $59.02 could open the way toward the $55.42 to $57.41 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.