“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,” added Wagner.

PGJ currently trades about 4.4% below its 52-week high. Much of the ETF’s allure to investors has been driven by its noticeable lack of exposure to state-run banks and oil companies coupled with its heavy weights to high-flying Chinese Internet stocks. [10 ETF Investments That Really Delivered in 2013]

While not a pure play tech ETF, that sector represents over 55% of PGJ’s weight and seven Internet stocks are found among the fund’s top-10 holdings, including Ctrip.com (NasdaqGM: CTRP), Baidu (NasdaqGM: BIDU) and Sina (NasdaqGM: SINA).

PowerShares Golden Dragon China Portfolio