PowerShares Water Resources (PHO) recently broke previous highs at 19. I've been watching the ETF carefully since the resistance break. PHO has showed strong support at the previous high resistance level of 19, and now appears charged and ready for continuation to the upside.

The volume on the 19 break further confirms the markets willingness to take PHO higher. As I've made clear in the past, I'm bullish on water in 2007. PHO is a great way to get diversified exposure to water. Now that PHO has proven it can hold above 19, I'm ready to take it long once again.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.