TECHNICALS-US oil may retest support at $62.40

SINGAPORE, Feb 6 (Reuters) - U.S. oil CLc1 may retest a support at $62.40 per barrel, with a good chance of breaking below this level and falling toward $61.37.

A mall wave c from $64.65 has briefly travelled below its 100% projection level of $62.62. Chances are it may extend into the range of $61.37 to $61.85. This wave is considered a part of a correction from $66.11.

In addition to a series of projection levels, the wave c also observes a set of retracements on the uptrend from $55.81 to $66.47.

The 38.2% retracement of $62.40 stands in the way, preventing the market from falling further. Resistance is at $63.40, a break above may lead to a gain into the $63.95 to $64.65 range.

On the daily chart, the contract is about to fall below the upper channel. The lower channel, which was duplicated from the upper one, suggests a target of $58.33.

Strategically, the target will be confirmed when the market falls to $61.80.

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.