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« Silver Wheaton Smashes All Technical Resistance and Surges to a All Time High | Main | Silver Wheaton: Ascending Triangle Formation »

Silver Wheaton Breaks Ascending Triangle Formation

It was great to see Silver Wheaton break up out of the ascending triangle formation it has been forming over recent weeks.

Silver Wheaton Breaks Ascending Triangle Formation

However it needs now to break the $12.50 level or else we could see a period of consolidation and range bound trading.

The technical indications of the Relative Strength Index also suggest a small fall is due. As you can see, the RSI is at 66.93, getting quite close to the sell zone that starts at around 70. In fact if we take a look at the history of the RSI for SLW we see that it has not been below 50 for over three months. So perhaps a small decline in price is in order, perhaps to the $12 level, where the top of the ascending triangle that once was a resistance could now become a support.

It would be healthy to witness some consolidation around $12.50 to $12.00, a tad of base building, before Silver Wheaton continues to move onwards and upwards.

The spark needed to ignite a new rally in this silver stock is most likely to be a rise in silver prices, which we see coming at the end of the summer, as the summer is a seasonally quiet time for silver, gold and the other precious metals.

Silver Wheaton trades as SLW on both the New York Stock Exchange and the Toronto Stock Exchange and is a BUY on our portfolio of silver stocks.

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Reader Comments (1)

hi nice post, i enjoyed it

August 18, 2007 | Unregistered CommenterCamila

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