In late August 2013, WisdomTree International SmallCap ETF ($DLS) broke out from a base around the $58 area.

After moving higher, the price eventually pulled back and found support at the rising 20-day exponential moving average (after a slight, three-day "undercut" of support).

Now, $DLS has once again pulled back to and "undercut" the 20-day exponential moving average, where there is also support from the 38.2% Fibonacci retracement level, as well as the prior swing high of the last short-term consolidation.

This triple convergence of support levels is annotated on the chart below:



On the longer-term weekly chart of $DLS, there is support from a dominant uptrend line that began with the low of June 2013.

The longer a trendline has been in place, the more likely that trendline is to continue providing support.

In this case, $DLS has had at least three touches of its weekly uptrend line, which indicates a pretty solid trend has been established:



Although our trading strategy for individual stocks focuses more on buying breakouts in bull markets, we prefer buying most ETFs on a pullback after they have already broken out.

Because the short-term pullback of $DLS is backed by a triple convergence of support, and the weekly uptrend line remains healthy, we are now stalking $DLS for potential buy entry going into today's session.

Our exact trigger price for the pullback entry, as well as the protective stop and target price for $DLS, are listed for Wagner Daily subscribers in the "Wathlist" section of today's report.

In addition to the new swing trade setup in $DLS, both $FAS and $SKYY remain on our ETF watchlist as well.

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.