After an ugly gap down from a false breakout to new swing highs on 8/7, the Guggenheim Solar ETF ($TAN) is trying to hold onto key, intermediate-term support of its 50-day moving average (or 10-week MA on the weekly chart). Furthermore, $TAN has also come into support of its dominant uptrend line that has been in place for the past five months:

Here is an updated weekly chart of the $TAN:



If the price action in $TAN holds above the $25 - $26 level, it may present an ideal, low-risk buy entry point to enter a new position (or add to existing shares if already long from our original buy signal last month). Ugly selling action in First Solar Inc ($FSLR) has been a drag on the ETF lately, as the stock carries a 10% weighting in $TAN. At the very least, we would like to see $FSLR hold above its 200-day moving average over the next two weeks.

Like $TAN, iShares Dow Jones US Medical Devices ETF ($IHI) has been in pullback mode since gapping down below the 20-day EMA last week. So far, the price action has held above the 10-week moving average on the weekly chart as well.

On the weekly chart below, note there is support from the rising 10-week MA and the highs of the last base. If this level continues to hold, we will look to enter $IHI within the next few days:

 

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.