One downside target remains at 23.70, although the ones that have fallen so far allowed us to avoid the temptation of augmenting our position on the way down. Unfortunately, that target is not the worst-case I promised in today’s commentary. That distinction goes to the 18.60 Hidden Pivot ‘D’ of the large pattern shown. While my gut doesn’t expect Silver Wheaton to fall that far, we’ll rely nonetheless on technical analysis alone to divine things that logic and instinct perhaps cannot. Meanwhile, I would encourage bottom-fishing at the 23.70 target in either of two ways: 1) bid 23.74, stop 23.59 for 400 shares, or 2) via camouflage, by four June 25 calls (which would be selling for around 2.00 with the underlying shares at or near the target. Stop yourself out of them, though, if they trade for 0.25 less than you have paid. _______ UPDATE (10:50 p.m. EDT): The 23.70 target gave way so easily that we should brace for a washout to 18.60 over the next 7-10 days (if not sooner). Losses from either trade advised would likely have totaled less than $100. Today, nimble scalpers could play for a tradable rally from 22.15, the ‘D’ target (on the 240m chart) of A=31.03 on 5/1, B=25.57 on 5/9. Alternatively, bulls could get back in the game with a thrust today exceeding 24.90. Don’t pass up a chance to buy following a ‘b-c’ correction from just above the 5/15 peak located at that number._______ UPDATE (May 17, 2:44 a.m.EDT): 24.90 is still the number to beat for bulls to get back in the game. A ‘b-c’ pullback from just above it could provide camouflageurs with a relatively low-risk way to get long, although this may be possible from lower levels on the lesser charts.
