Yesterday, PowerShares Golden Dragon China ($PGJ) triggered a buy entry for us when it cleared the downtrend line shown on the daily chart below:



With yesterday's advance, $PGJ is now back above the 50-day moving average. We should eventually see the 20-day exponential moving average cross through the 50-day exponential moving average and begin to separate.

Prior to breaking the downtrend line, $PGJ formed two higher lows within the base, which is what we typically look for in most consolidation patterns. Volume was also quite bullish, as it dried up considerably in late November. We look for the price action to push higher and eventually break out to new 52-week highs.

After a strong summer rally, First Trust ISE Global Wind Energy ($FAN) has spent the past two months in pullback mode, correcting 10% off the 52-week high. The consolidation broke below the 10-week moving average a few weeks ago, but the break was on light volume:



$FAN has cleared the downtrend line of the consolidation, but still has to climb above the 10-week moving average. There is some resistance just above the 10-week MA, around the $11.10 - $11.20 area, so the price action may have to consolidate for a few weeks around this level before moving higher.

$FAN is not actionable for swing trade entry right now, but we are waiting for low-risk entry point to develop. As always, we will be sure to notify Wagner Daily subscribers if/when $FAN meets our criteria for buy entry.

Overall, leading stocks continue to act well. Some are breaking out to new highs like $FB (which is currently showing an unrealized gain of +21% since our December 2 buy entry), while others are trying to hold on to key support levels, such as $SLCA.

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.