The iShares India 50 ETF ($INDY) looks to be forming a short-term consolidation here and could be ready to move higher within the next few weeks.

Volume has really dried up during the current consolidation, as indicated by the thick green moving average in the volume pane of the chart below (5-day moving average of volume). Note that the 5-day MA of volume has dropped considerably the past few weeks.

A dry up in volume during a consolidation is a bullish sign because it means the bears are not selling into strength as the stock/ETF takes a rest:



Panning out to the longer-term monthly chart of $INDY, notice the current price is just below the highs of 2012 and 2013. If the ETF breaks out above that key resistance level, bullish momentum should carry it substantially higher in the near to intermediate-term:



Another benefit of $INDY is its low correlation to the direction of the US stock market because it is an international (Asian) ETF.

We are placing $INDY on today's watchlist as a potential swing trade buy entry. Subscribing members of The Wagner Daily should note our exact trigger, stop, and target prices for the $INDY setup in today's report.

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.