After an ugly selloff from last December to late June, Market Vectors Egypt ETF ($EGPT) reversed off the lows on big volume and rallied 20% higher before stalling out around $47.

After nearly a two-month consolidation period that held above the rising 10-week moving average, $EGPT broke above the highs of the range this week on a pick up in volume. The price action also cleared the 40-week moving average (orange line), as shown on the weekly chart below:



If the current breakout holds, the next level of resistance is around $50, and then the $52-$53 area. If this ETF swing trade setup triggers our buy entry in the coming days, we would look to sell into strength and take profits around the $52-$53 level. Regular subscribers of The Wagner Daily should note our exact buy trigger, stop, and target prices in today's report.

On the shorter-term daily chart of $EGPT (below), notice how the price action has tightened up nicely over the past two weeks, just above the rising 50-day moving average:



Although the 50-day moving average is still below the 200-day moving average, the 50-day moving average is in a clear uptrend AND the price action is now back above the 200-day moving average. This indicates near to intermediate-term momentum and the balance of power is shifting to the bulls.

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.