The contract is riding on a wave C from $51.23, which has again travelled above its 61.8 percent projection level at $59.51. So long as oil stays above this level, it may climb to $61.46. Strategically, the target at $61.46 will be confirmed when oil goes above $60.39.

A break below $59.75, the 7 percent retracement of the uptrend from $51.23 to $60.39, could cause a loss to $59.05. On the daily chart, oil seems to have cleared a resistance at $59.63, the 50 percent retracement of the downtrend from $76.90 to $42.36. It is likely to gain more to $63.71.

* The analysis is based on delayed data, prediction may be affected. Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.

** 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 own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **