SLW Setting Up For Higher Prices
Igor Rakhmanov | Mar 13, 2014 01:04AM ET
Silver Wheaton Corporation (SLW) - a silver and gold streaming company has completed forming an interim rounded bottom and is consolidating in a nice bull flag pattern just above the 24-24.5 strong support level. Decreased volume indicates that the market participants took a pause after February’s strong run. The recent volume spike (red arrow) when price tested the EMA (20) and bounced back confirms the validity of the EMA (20) as dynamic rising support during the current short-term uptrend. Note that SLW is outperforming Silver and Gold (upper panes) and any sustained strength in precious metals should trigger an upside breakout from the bull flag.
The horizontal count from the interim fulcrum bottom on the short horizon P&F chart projects the potential target at 29.5 which coincides with the next resistance level.
Disclosure: I am long SLW calls.
Disclaimer: I express only my personal opinion on the market and do not provide any trading or financial advice (see Disclaimer on my site).
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