Bank of America Merrill Lynch's technical analysis research team presented its favorite chart trade ideas Monday. The firm told investors to buy the U.S. dollar, WTI oil and the S&P 500 going into next year.
"Technical analysis often shines as the fundamentals become more transparent. Surprise outcomes in 2016, especially the ... U.S. election, have led to a paradigm shift in financial markets," technical analysts Paul Ciana and Stephen Suttmeier wrote in a report to clients.
"We admit, markets have moved far and fast for tactical concern, but we think these new technical trends will continue as investors adjust their portfolios throughout 2017."
Here are the reasons why they are bullish on the dollar, oil and the market.