I said on June 13 that a reversal in Brent Crude beginning around $79 a barrel might make an excellent short-selling opportunity, writes Dominic Picarda.
Now, following a sell-off in July, the price of the black stuff is spurting towards that level once again. At the very least, I would expect a goodly short-term sell-off targeting below $70 to begin from around there, especially if daily momentum becomes as overbought as it was in June. Once oil’s bear market resumes in earnest, a drop to $50 and well beyond remains my call.
Just as the UK housing market is enjoying a brief rebound, the listed commercial property sector is temporarily on the up (June 27).
The FTSE 350 Real Estate sector’s bounce is already looking stretched, although further overshoot towards 1853 cannot be ruled out. The longer-term prognosis
is negative, however, and a retest of the lows at 1,091 is still my favoured scenario.
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