Today's posting is a 1.5-year chart of Silver Wheaton and I believe this chart best illustrates what we can expect from the stock in the coming weeks. As you can see, there is a clear support trendline (green) which goes back to October of 2011... and my premise is that SLW needs to test this support trendline before a new breakout ensues.
In the short-term, however, I still anticipate that SLW will rally to test the red resistance trendline (peaking around $40) in the coming weeks. I believe this is the case because many of the short-term indicators are strongly oversold and because my Elliottwave count on SLW suggests that we need another X wave before a final Y wave down to test support.
Finally, please note that there are 2 corroborating indicators (aside from the green support trendline) which lead me to anticipate a final low near $32:
1] the 200-day moving average for SLW is currently at $32.35; and
2] the 50% retracement from the $22.74 low in May of this year is at $31.77
Both of these target are pulling SLW down, but in a very erratic fashion...
Bottom line: My intuition, my Elliottwave count, and various traditional technical indicators on SLW lead me to the above analysis/wave predictions and we will very soon see if these assumptions are correct.