Over the past several weeks, the iShares Dow Jones Select Dividend Index ETF ($DVY) has been consolidating near its multi-year high. With the exception of one day (July 31), volume has also been coming in lighter than average (a bullish sign when stocks are consolidating for potential breakout). Over the past three days, the trading range has tightened up substantially, which is often a precursor to a breakout from consolidation. Just below last Friday’s low lies near-term support of the 20-day exponential moving average (EMA). Now, we are targeting DVY for a potential breakout entry, which would occur on a volume-fueled move above last Friday’s (August 10) high of $57.59. This buy setup in DVY is an “official” play that has been added to our watchlist, where you will find our detailed trade parameters.