FX.co ★ Short-term technical analysis on Oil for January 2nd, 2022.

Oil price is trading around $80 once again after making a higher low at $77. Oil price is now forming a bullish sequence of higher highs and higher lows inside an upward sloping channel after the break out of the bearish trend it was in since the high of $93.74. Support is at $77. Bulls need to defend this level in order to continue higher. The RSI is far from overbought levels and as long as price is inside the bullish channel, we should expect Oil to continue higher towards $83-$84. A break below $77 will be a sign of weakness and could bring Oil price back towards the December lows.