The positive divergence between silver and miner Silver Wheaton Corp. (NYSE:SLW) is striking.
Spot silver is getting the benefit of the doubt from an upmove in industrial metals like copper, which anticipate stronger economic growth in ahead of an "unleashed" Trump Economy.
As a result, silver has managed to hold above its up-sloping 200-day EMA (17.79) amid a larger, still-developing, multi-year Rounded Bottom Formation.
Conversely, silver and gold miner SLW missed on earnings and has plunged beneath its up-sloping 200-day EMA (22.47) and has down-spiked into key multi-month support lodged between 22.00 and 18.00, which must contain any additional weakness to preserve its bull trend.
I'm looking for strong buying interest to emerge under 20.00 and a powerful upside reversal that will indicate the correction off of SLW's Aug. high at 31.35 is complete.