Top Trade Ideas for the Week of December 21

Cigna, Ticker: $CI
Cigna, $CI, made a top at the end of June and then fell in an arcing pullback. This consolidation created a rounding bottom with the down move. Into the week it is back trying to make a higher high. A possible reversal. The RSI is in the bullish zone and rising while the MACD is rising. Both support continued upside.

Graco, Ticker: $GGG
Graco, $GGG, had been rising in a broad channel until it broke that to the downside, under the 50 day SMA in December. But that fall seems to have found support last week at the lower Bollinger Band® as it printed several doji reversal candles. The RSI touched the oversold level and bounced while the MACD is still falling but starting to level off. Look for a new high to confirm a reversal.

Ingredion, Ticker: $INGR
Ingredion, $INGR, had a strong trend higher from a bottom in August to a peak in late November. It has been in a sideways movement since then though with deteriorating momentum. The RSI remains in the bullish zone but the MACD is moving lower and avoided a cross up last week. Watch for a break of support to enter on the short side.

Och-Ziff, Ticker: $OZM

Och-Ziff, $OZM, started falling in June, losing over 60% of its value before finding support and bouncing in November. It consolidated in a bull flag after an initial bounce and it pressing higher again. The RSI is knocking on the bullish zone while the MACD is leveling after a run higher. Look for a move over Thursday’s high to participate.
After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, heading into the shortened Christmas week sees the equity markets looking weak in the short with the SPY weak in the intermediate term as well.

Elsewhere watch Gold for a bounce in its downtrend while Crude Oil continues lower. The US Dollar Index looks strong and ready for more upside while US Treasuries are mired in broad consolidation. The Shanghai Composite is biased higher in consolidation and Emerging Markets are biased to the downside.

Volatility looks to remain elevated keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ. Their chars concur on the daily feed after back to back strong down days, while the IWM and QQ are nearing support in prior consolidation channels on the intermediate view. The SPY looks to be weaker rolling lower on the longer view. Use this information as you prepare for the coming week and trad’em well.

This post originally appeared on Dragonfly Capital