After a false breakout to new highs in mid- to late July, Guggenheim Solar ETF ($TAN) has formed a six-week base, with the lows of the current base finding support at the highs of the previous base, around $26.

$TAN also held support from the rising 10-week MA in August. There were a few shakeouts, but the price action never closed below the 10-week MA:



$TAN has held up well the past few weeks, setting higher swing lows (so far) while most averages have set lower lows. As such, we are monitoring $TAN for a potential breakout entry to add to our existing long position (which is presently showing an unrealized gain of 18% since our original buy entry).

First Trust Natural Gas ($FCG) continues to trade in a tight range on the weekly and daily charts. The daily chart below shows the tight action just below the highs of the range (red dotted line), but still above the rising 50-day MA:



With $FCG, notice the 20-day EMA is also above the 50-day MA (and trending higher as well). The volume has been light the past few weeks, so we are on the lookout for a potential breakout above the range high within the next week or two.

We are placing $FCG on today's watchlist, as we plan to add to our existing position on a breakout above the range highs. Our exact entry, stop, and target prices for this trade setup is available to subscribing members of our swing trading newsletter in the watchlist section of today's report.

After a three-day shakeout, our long position in ProShares Ultra Silver ($AGQ) is trading near the prior swing high, and is poised to establish a new swing high this week. If the price action stalls around $26, then we could see one or two weeks of consolidation above the rising 20-day EMA.

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.