Silver Wheaton has been performing extremely well for us recently, gaining 25% in the last few weeks.

We have been keeping our readers informed and updated every step of the way as SLW formed an ascending triangle formation, then broke out of that and found more resistance which it eventually broke through and then went on a run to make an all time high.

Now it looks as if Silver Wheaton is pausing for breath as it hovers in the $13.50 - $14.25 range. We signalled to take some profits at $13.50 as we felt that after such a run, Silver Wheaton was due a correction. We still hold that opinion and we are looking to buy back the proportion of our shares that we sold, at a lower price, allowing us to increase our position (in terms of numbers of shares not dollars).

Silver Wheaton still appears to be technically overbought, and so although it seems to be finding some support at $13.50, the Full and Fast STO as in the overbought sector and similarly the RSI is at the top of its range.

SLW could fall back to $12.00 – as that is where the next technical support level is for the stock. Twelve dollars was a resistance level during May and June but as SLW has surged past it, it now could become a support.

However, perhaps a correction this far is a little drastic, we do think SLW will pullback $1-$2 and that is when we intend to consider adding to our holdings of Silver Wheaton and upgrade it from a HOLD to a BUY in our silver stocks portfolio here at Silver Prices.

Silver Wheaton trades as SLW on the NYSE and TSX.