Guggenheim Shipping ETF ($SEA) rallied 20% or so off the 200-day MA before stalling out around $20 in late October. Since then, $SEA has formed a very tight base around the 10-week moving average (light blue line on chart below). The correction has been more by time than price, as $SEA hasn't pulled back much off the swing high:



Note the dry up in volume within the base, which is the result of traders exiting once the momentum is gone. The quiet volume is a sign that many have given up on $SEA, which is usually when a price correction comes to an end.

First Trust ISE Revere Natural Gas ($FCG) has been in base-building mode since the last rally stalled in late October (around $20.50). After breaking down below the 50-day moving average in early December, $FCG made a run at the prior swing low from November 7 on Wednesday. The intraday selloff was quickly reversed, producing a bullish reversal candle by Wednesday's close (the close was back above the the last swing low):



On Thursday, $FCG followed through on the prior day's bullish reversal action with a decent rally that stopped just shy of the 20-day exponential moving average.

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.