TECHNICALS-US oil may retest support at $66.16

SINGAPORE, Feb 24 (Reuters) - U.S. oil CLc1 may retest a support at $66.16 per barrel, a break below which may trigger a fall to $65.23.

A bearish divergence formed on the hourly RSI, signalling the exhaustion of the uptrend and a forthcoming correction, which could be considered the second pullback toward a bullish wedge.

Only if the market sentiment turns out to be extremely strong, it is biased to retrace toward $65.23. Resistance is at $67.14, a break above which may lead to a moderate gain into $67.68-$68.26 range.

On the daily chart, the contract seems to be consolidating around resistance at $66.63. The consolidation so far looks flat. Until the market stands firm above this level, the possibility of a deep drop toward $63.86 couldn't be wiped out.

The uptrend remains steady within a rising channel. It may extend rapidly toward $69.39-$72.82 range, once the market breaks $66.63.

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.