Global Wind Energy ETF (NYSEARCA:FAN) rallied 10% higher after breaking the daily downtrend line, with only one day of rest (Jan. 2). If the rally loses steam here, we could see the price action chop around for a few weeks, which would enable the 10-day moving average to catch up. This is where a low-risk buy point could emerge if the price action remains tight:
All three clean energy ETFs mentioned above remain on the internal watchlist of our swing trading newsletter for potential pullback buy entry. Furthermore, we continue to hold SolarCity Corp (NASDAQ:SCTY), an individual stock in the solar sector, from our December 19 entry at $53.44. Presently, this momentum trade is showing an unrealized price gain of 26.3% since our buy entry, but we will continue to ride the gains as long as price action remains bullish.
Additionally, we continue to monitor PowerShares Dynamic Food & Beverage ETF (NYSEARCA:PBJ) for a potential breakout entry from a six-month long base at the highs.
After pulling back about 7% off the highs of August, the pullback from the false breakout in late November found support just 4.5% off the high, so the price action is now tightening up. The weekly chart below illustrates this:
Note the past three weeks of price action, with two tight weeks of trading and a bullish reversal candle this week. As such, $PBJ could be setting up to breakout within the next week or two, and is a great candidate to add to your ETF watchlist.
This article is brought to you courtesy of Morpheus Trading, LLC.