Looking For A Potential Swing Trade Entry In These ETFs (SEA, FCG)

etfsMorpheus Trading:  Guggenheim Shipping ETF (NYSEARCA:SEA) rallied 20% or so off the 200-day MA before stalling out around $20 in late October. Since then, $SEA has formed a very tight base around the 10-week moving average (light blue line on chart below). The correction has been more by time than price, as $SEA hasn’t pulled back much off the swing high:


Note the dry up in volume within the base, which is the result of traders exiting once the momentum is gone. The quiet volume is a sign that many have given up on $SEA, which is usually when a price correction comes to an end.

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *