Miner Stock Watch: Silver Wheaton (SLW)

Robert Lesnicki

global silver miningPrecious metals made a statement this past week. Silver, in particular, caught my attention. It was higher by more than 6% for the week. That kind of move puts the silver miners on my radar. One miner that came across on my chart scans is Silver Wheaton (SLW).

Let’s take a look at some things that stand out to me on both the long-term and short-term price charts.

Silver Wheaton (SLW) Monthly stock chart

Here’s a lifetime monthly chart of SLW. As you can see, Silver Wheaton is back testing and holding its previous major break out area.  The stock looks constructive as long as this break out area holds.

Silver Wheaton long-term stock chart analysis

Silver Wheaton (SLW) Daily stock chart

Here’s a daily look at SLW. The stock has recently put in a higher low. Eventually, you’ll want to see higher highs to give confirmation to this recent move.  The daily RSI is indicating overbought conditions, so the stock price could see some consolidation in the short term.

slw technical analysis june 2014

Seasonality

Seasonally, Silver Wheaton is coming into a positive 2 month period. The stock has been higher on 7 of 9 occurrences in the month of July (78% win rate). The average win percentage for July is +9.32%. In August, the stock has been higher on 7 of 9 occurrences (78% win rate). The average win percentage for August is 15.16%. (Data sourced from paststat.com)

It’s also important to remember that every rally attempt in the past year has been a selling opportunity. So it’s prudent to have stops and honor them when they trigger. Thank you for reading.

No position in any of the mentioned securities at the time of publication.  Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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