SLW

Friday's shakedown was sufficiently vicious to imply that Silver Wheaton's handlers were keen on buying the stock. If the trampoline bounce they engineered from the low goes just a tad farther this morning, surpassing a minor external peak at 35.67 (see inset), bulls will be on their way to rejuvenating a larger, bullish pattern with a midpoint resistance at 37.515 that would become our minimum upside objective. _______ UPDATE (11:04 a.m. EST): This morning's sleazy, quasi-criminal head-fake winds up being constructive, because it created the bullish impulse leg and 36.60 target on which the stock is currently working. P=35.95 here, and it'll need to be surpassed before I can "guarantee" you that D will be reached

I was looking for a correction down to as low as 34.83, a Hidden Pivot, but bears haven't been up to the task, at least not so far. We can relax a bit for now, setting screen alerts at the upper and lower thresholds shown in the chart. The lie, respectively, at 36.93 and 35.04.  A 'B-C' pullback from just above the first number could provide an excellent 'camo' opportunity to get long, so I've set a screen alert to warn me if it happens.

Look for the correction to bring SLW down to at least 35.59. the Hidden Pivot midpoint of the pattern shown.   You can try bottom-fishing there with caution, but bear in mind that if the support is breached by more than about 4-5 cents, the futures would be signaling further vulnerability down to at least 34.83, its 'D' sibling.

Silver Wheaton's delightful rampage is in no danger of being suppressed, and so we should look for this burst to continue to at least 39.06, the Hidden Pivot target of the pattern shown.  The p midpoint at 36.76 has already been bettered by 50 cents, adding to the woes of those with the bad judgment to be short right now. The camo pattern we might have used to get long at these levels is a humdinger, with three  single-bar coordinates (labeled in green) so obvious that they are visible even on the 180-minute bars without the use of a magnifying glass.  For your information, the coordinates are: A=34.86 (11 a.m. EST on January 30), B=36.80 on Jan 31, and C=35.04 on Jan 31, for E=35.53.

The 20.27 target of the bearish pattern shown remains valid, although bulls can take encouragement from the fact that the futures seem so reluctant to get there. More bullish still -- decisively so -- would be an impulsive thrust exceeding the 32.69 'external' peak labeled on the chart.  Failing that, the stock would nevertheless be a compelling buy on a fall to 28.98, the midpoint support of the ABC pattern shown in purple.

It's been a while since I looked at Silver Wheaton, which has been tracing out a bearish pattern for too long to give bears much comfort.  Check out my key numbers for the stock if you hold SLW shares, since they are likely to be helpful in gauging the seriousness of any dramatic rally or decline.

The 15% rally that has unfolded since December 29 is still just noise on the hourly chart, no more than a dueling offset to the robustly bearish impulse leg created that day with a bottom at 26.85. Looking ahead, there are just three benchmarks that will matter for bulls: 32.69, 34.36 and 36.50.  Merely exceeding them will not be enough, either. What is needed is an upthrust that gets past the first two without much difficulty. We await the effort, but until it succeeds, a major downside target at 20.72 (HP midpoint=29.05) will remain very much in play.

Careful here.  The 34.95 midpoint support of a bearish pattern projecting to 33.41 has been breached by eight cents.  That in itself is sufficient to tip our short-term bias negative, but if the pivot should be exceeded on a closing basis, brace for more downside to the 'D' target.

The good news is that Silver Wheaton appears to have a 15% rally ahead that will be well nigh unstoppable. Push and pull will combine to lift the stock, respectively, via a Hidden Pivot rally target at 40.70, but also via the magnetic attraction of a trendline that has figured prominently in the SLW's ups and downs for more than a year.  A two-day close above the trendline should suffice to set it on its way toward new all-time highs, but until that happens we should not take for granted that bulls still rule.  The 36.49 midpoint resistance of the pattern shown has already been exceeded by a whopping 89 cents, lending weight, if not quite certitude, to the 40.70 target that sits, as of today, just above the trendline.