5 Trade Ideas for Monday: Cigna, DexCom, Five Below, Grainger & Workday

Cigna, Ticker: $CI

Cigna, $CI, started last week testing all-time high from January but fell back immediately. It ended the week making a lower low. The RSI also made a lower low as it is at the edge of the bearish zone while the MACD crossed down. Look for continuation to participate lower…..

DexCom, Ticker: $DXCM

DexCom, $DXCM, started higher in October last year after gapping down. It gapped higher in August and ran to a top in early September. It has traded in a range ever since that gap up. The RSI is pulling back in the bullish zone with the MACD crossed down. Look for a break of support to participate…..

Five Below, Ticker: $FIVE

Five Below, $FIVE, gapped higher in June and then consolidated for 2 months. That was followed by a second move higher and a gap to the all-time high in September. Since then it has been moving lower, and ended last week back at the June gap level. The RSI is falling and bearish with the MACD falling. Look for a push into the gap to participate…..

Grainger, Ticker: $GWW

Grainger, $GWW, rose steadily to a top in August. It plateaued there for a month and then started moving lower in October. It found support at the end of the month and moved back higher to meet resistance at a lower high. Last week ended with it reversing back lower. The RSI is falling into the bearish zone and the MACD is crossing down. Look for continuation to participate…..

Workday, Ticker: $WDAY

Workday, $WDAY, broke above consolidation in August only to sputter and top at the end of the month. It pulled back to the low of the prior consolidation and started a new range that lasted until the end of November. That is when it gapped up and ran to a top last week. Consolidating now, it has a RSI pulling back from overbought and a MACD flattening. Look for a consolidation break 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 with only 2 full weeks left in the trading year sees equities unable to shake out of this pullback and some sectors looking as they may be worsening.

Elsewhere look for Gold to continue to move higher while Crude Oil is poised to bounce in its downtrend. The US Dollar Index continues to consolidate while US Treasuries move up in a short term trend. The Shanghai Composite continues to show signs of a possible consolidation in its pullback with Emerging Markets continuing their long term downtrend.

Volatility looks to remain above recent ranges and possibly poised to move higher, adding pressure to equity prices. The equity index ETF’s SPY, IWM and QQQ, responded by reversing their recent mini recoveries and turning lower. The IWM looks the worst as it is now resuming a downtrend while the QQQ is next in a short term downward channel, with the SPY holding in a consolidation range. Use this information as you prepare for the coming week and trad’em well.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.