Oil is higher in Asia-Pac trade to begin the....>

OIL: Oil is higher in Asia-Pac trade to begin the week, WTI is up $0.18 at

$61.62 while Brent is up $67.77. Oil initially dropped on Friday but bounced

heading into the close after the Baker Hughes US Rig Count fell by 5 to 742 and

spurred some positive sentiment around oil. 

- The sell off on Friday was attributed to profit taking after a strong opening

week to 2018. At these price levels many companies are once again above

breakeven prices and so the recent rally could provoke a production response. A

Dallas Fed Survey posited between $61-$65/bbl US drilling activity is expected

to rise.

- MNI technical analysis sees support at $61.09 - Low Jan 5, resistance is seen

at $61.74 - Hourly resistance Jan 8. Bulls take comfort as gains above the

200-WMA $59.95 continue. O/B studies looking to correct remain the key concern

for bulls. In saying that, bears now need a close below $61.09 to ease bullish

pressure and below $59.82 to shift immediate focus back to the bull channel base

($58.60) & 21-DMA ($58.67). Bulls now need a close above $62.21 to retain focus

on the bull channel top.