Stock Chart Analysis SLW

Stock Chart Analysis

Silver Wheaton Corp. (USA) (Public, NYSE:SLW)

I normally show daily charts on my posts since most of my trades are fairly short term in nature. However, I also like to keep an eye on longer term charts to understand the larger trend in a stock and to maintain a better perspective with reduced noise for a stock. SLW is a stock that looks pretty choppy if you look at a recent chart, but if you step back and look at the weekly chart you will see that it is approaching all time highs. What makes this impressive is that silver has been looking quite weak lately and SLW is not following it down.

I'm not a big fan of rising wedge patterns as they can be nasty reversal patterns, but this almost looks like a triangle and I would say the difference is almost negligible. The bottom line is that if silver bottoms out soon, then SLW could be a very nice way to play this trend. I am keeping a close eye on that 12.50 area.

Good Trading,

Joey

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