SLW – Silver Wheaton (Last:33.70)

Silver Wheaton (SLW) price chart with targetsThe stock is sitting at a precipice, since yesterday’s close was on a major trendline (see inset). The support is so obvious that we should be alert to a possible false breakdown that could afford us a bottom-fishing opportunity.  The nearest Hidden Pivot support lies at 31.91 (A=37.72 on May 10, daily chart), so that’s where it should be attempted.  Camouflaged entry is preferred, but if you don’t want to bother, or if you don’t know how, bid 31.93, stop 31.86, for 400 shares. Please note that if Wheaton should really fall apart it could fall all the way to 26.77, the ‘D’ target of a pattern shown in the chart.  We continue to hold 300 shares @ 42.01 against three June 40 puts with a 4.00 basis, but option expiration will soon put it out of its misery.