Two Energy Charts ... 60 Looms Ahead

For quite some time, I've had $60 as my target for oil. I have an interesting chart to show you about that. First, let's look at how money has flowed out of energy and into consumer staples ...

Boy, that illustrates what's been happening, doesn't it. Will this trend continue? Perhaps for a little while, but my target of $60 on oil looms ahead. We may even hit it this week. What happens then? Let's look at another chart...

That support on the weekly chart is strong, and it should come into play. My bet is that oil will bounce at 60, and perhaps bounce hard.

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