Clean energy ETFs have put in a strong advance over the past few weeks. $TAN, $QCLN, and $FAN have all run up with little rest, after breaking out above their daily downtrend lines and clearing the 50-day moving averages.

Global Wind Energy ETF ($FAN) rallied 10% higher after breaking the daily downtrend line, with only one day of rest (Jan. 2). If the rally loses steam here, we could see the price action chop around for a few weeks, which would enable the 10-day moving average to catch up. This is where a low-risk buy point could emerge if the price action remains tight:



All three clean energy ETFs mentioned above remain on the internal watchlist of our swing trading newsletter for potential pullback buy entry. Furthermore, we continue to hold SolarCity ($SCTY), an individual stock in the solar sector, from our December 19 entry at $53.44. Presently, this momentum trade is showing an unrealized price gain of 26.3% since our buy entry, but we will continue to ride the gains as long as price action remains bullish.

Additionally, we continue to monitor PowerShares Dynamic Food & Beverage ETF ($PBJ) for a potential breakout entry from a six-month long base at the highs.

After pulling back about 7% off the highs of August, the pullback from the false breakout in late November found support just 4.5% off the high, so the price action is now tightening up. The weekly chart below illustrates this:



Note the past three weeks of price action, with two tight weeks of trading and a bullish reversal candle this week. As such, $PBJ could be setting up to breakout within the next week or two, and is a great candidate to add to your ETF watchlist.

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.