SLW – Silver Wheaton (Last:19.68)

It’s been quite a while since we fooled around with this stock, but I am featuring it today since it would become a fetching buy at the 16.74 Hidden Pivot target shown. That is my minimum downside objective for the near term, and if it is reached that would represent a further fall of nearly 13% from current levels.  The corrective abc pattern looks sufficiently compelling that we can attempt bottom-fishing without camouflage. Accordingly, I’ll recommend buying four Aug 17 calls if and when the stock gets within 8-12 cents of the target. If this were to occur next week, I would guess that the calls would be trading for around 1.40, give or take a dime. You should monitor the bid/offer for the options as the stock approaches the target, since that will give you a precise idea of how much you should pay for them. We’ll risk a theoretical $100 on the trade by stopping ourselves out if the options trade for 0.25 less than we’ve paid for them. _______ UPDATE (June 27, 3:38 a.m. EDT):  The 16.74 target flagged above still looks opportune, but to avoid missing a buying opportunity if it’s not reached, I’ll suggest looking for camouflage set-ups on the 15-second chart.  A key high at 17.86 recorded at 2:45:15 is the kind of ‘external’ peak I have in mind for this gambit. _______ UPDATE (July 2, 2:55 a.m. EDT):  The stock has reversed sharply off a 17.74 low that lay a dollar above my target. This is short-term bullish, although not yet entirely persuasive because Friday’s high suspiciously failed to surpass a key ‘external peak at 19.85 recorded on June 24.  In any event, camouflage traders should look for opportunities — probably from the buy side — on the 15-minute chart. _______ UPDATE (July 8, 2:56 a.m. EDT): It just gets worse, no? Now a 15.82 target has come into view (see inset, a fresh chart), implying that SLW is not exactly an opportune by at these levels. (Indeed, the recent rally up to p turned out to have been an opportune short.) A bullish turn is not out of the question, but the stock would need to hit 20.55 today with an unpaused thrust to make a convincing case.

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