Silver Wheaton’s rally since mid-May is of less than, er, sterling pedigree, since the most visually obvious ABCD piece of it has a point B high that is pure sausage. The good news is that Tuesday’s thrust created a legitimate and very robust impulse leg, along with an uptrend that has room for a little more immediate upside, since the target of our ‘bad’ pattern, 27.69, lies six cents above the so-far high. From a trading standpoint, the rally will be difficult to enter at the moment, since it has been developing for three weeks. My suggestion to camouflageurs and Pivoteers is to buy the low of an abcd retracement from 27.69, although it is impossible to say whether it will turn from p, or perhaps d. _______ UPDATE (June 7, 9:55 a.m. EDT): SLW blew past the target before pulling back, leaving bulls well in command. Traders looking to stake out a long at theses levels should reference May 4’s 29.13 peak for camouflage. _______ UPDATE (June 7, 7:16 p.m. EDT): The stock looks feistier than most gold stocks at the moment, having pulled back just enough to be considered re-energized for a C-D leg to complete the bullish cycle begun last Wednesday from 25.12. To get off the launching pad, the stock would need an 86-cent booster rally from a low above the point ‘A’ shown in the (new) chart. If and when that trigger is hit, camouflageurs will have their cue to attempt getting long. _______ UPDATE (June 12, 9 p.m. EDT): Based on the pattern shown in the chart, the stock has tripped a ‘buy’ signal at 27.32. If I hear from at least two traders in the chat room on got on board following my instructions, I’ll establish a tracking position for your further guidance. Meanwhile, a partial profit on half the position should be taken at p=28.18. Target: 29.90. _______ UPDATE (June 15, 1:11 a.m. EDT): Assuming an initial position of 400 shares from 27.32 and an exit from half at 28.18, we hold 200 shares with an effective cost basis of 26.46. To finish the week, use an impulse-leg stop-loss on the 30-minute chart. This implies that exit would be signaled on a print today at 26.78. (See updated chart for graphic explanation). We’ll be looking to exit another hundred shares at 30.17, a new target derived, on the 240-minute chart, from A=24.85 on 6/1, B=28.56. The target and pattern are confirmed by the pullback on June 13 from 28.31, the exact midpoint pivot. If and when SLW blows past it, you can bet dollars to donuts that ‘D’ will be reached.
