Chart of the Week

MM has avoided the oil and gas sector since we sold Woodside (WDS) over 12-months ago, and while we’re not adding it back to our Hitlist in the near future, we feel their journey lower is approaching its conclusion. An ideal risk/reward scenario would be panic selling across the complex on a sharp dip by oil under $US80/barrel.

• We believe crude oil is “looking for a low” after its 2-year decline, but we’re in no hurry to pre-empt such a move.