SLW, Silver Wheaton Corp. update

We have had bullish and bearish outlooks on this stock, neither were necessarily correct. It is very elusive so here is another go at it;

slw aug 2013

From the 2001 lows in the precious metals, this stock has risen like a meteor  in what any reasonable person eyeballing this chart would call a 3-wave move. Which either means that it is simple a large , corrective B-wave and we will continue down, or, that the 5-wave up sequence is not yet complete and we are just now starting the 5th wave which targets $60 or higher. So far the low point of wave 4 touches the high point of wave one, so there is no overlap. Un till that does happen, this bullish count remains valid and even if it does, a diagonal could still be a possibility.  Alternation is lacking , perhaps, but that is in any case not an absolute requirement. But even so wave 2 is steep zig-zag down whereas wave 4 is more like a sideways flat.

slw aug 24 2013 s

So, to repeat, this is either a wave 4, a-b-c (with 3 subsets of a-b-c’s within it, remember a c always has to have 5 waves) and we are on the way up, or will get bigger and we are presently in wave 4 of c. Overlap for that occurs at $34. Presently the rebound from the recent lows is very decidedly itself a symmetric a-b-c , as is the case with virtually all the gold mining stocks, but this can change. In short the bullish scenario is negated with a drop below $18 and, more or less, confirmed with a rise above $34. This stock , by the way, does not suffer from the usual stock specific idiosyncrasies like most minors, it just collects royalties.

See previous blogs for earlier bullish calls.