SPDR S&P Retail ETF ($XRT) has formed a bullish, 11-week consolidation, with most of the action holding above the rising 10-week moving average.

Last week's bullish reversal candle on a pick up in volume is also a clear sign of support. As such, look for $XRT to breakout to new highs in the near-term. Here's the weekly chart of $XRT:



On the shorter-term daily chart of $XRT below, we see that the 20-day EMA has crossed above the 50-day MA, and the 200-day MA is in a strong uptrend.

There is also a higher "swing low" within the base, which was created by last week's "undercut" of the 50-day MA. All these factors confirm a valid uptrend is already in place.

Yesterday, the price action cleared resistance of the two-day high, as volume ticked higher as well:



Because of the patterns on both the weekly and daily charts of $XRT, we are now stalking this ETF for potential buy entry going into today's session.

Paid subscribers of our ETF and stock picking newsletter should note our exact buy trigger, stop, and target prices for this trade setup in the "Watchlist" section of today's report.

Last week's buy entry into $IYZ (telecom ETF) followed through yesterday, with a close above the prior swing high of September 19. Existing long entries in $PHO (water resources ETF) and $PPA (aerospace & defense ETF) are also in good shape, as they are consolidating in a tight range above their respective 20-day exponential moving averages.

On the individual stock side, 8 of our 9 open positions are showing solid profits, while 1 position is breakeven. Silica ($SLCA) is now showing a whopping unrealized gain of 58.9% since our July 8 buy entry, and our added shares on August 14 are up 45.1%.

It's not always easy to hold winning trades for so long, but we continue to ride the profits on $SLCA because the consistently bullish price action has not yet given us a valid technical reason to sell.

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.