Friday, December 7, 2012

12/7 - Elliott Wave counts on SLW

The charts below illustrate my Elliott Wave counts on Silver Wheaton.

First, a 2-year chart showing SLW's Wave 4 consolidation Triangle or Combination, which bottomed in May of this year. We see a Wave (1) high near $40 and I believe we are now in a W-X-Y-X-Z combination for Wave (2). My projected low for Wave (2) is showing clustering targets near $32 (near the 50% retracement and the green support trendline). I project Wave (3) to commence from that area after a bottom is set and we see a clear 5- wave thrust upward.

The chart below shows Silver Wheaton's entire bull market run thus far. Note that the chart is Silver Wheaton's TSX listing (because there was no NYSE listing before 2005). Aside from my wave count, there are 3 noteworthy indications that SLW is soon to see new highs:

a. the consolidation from the 2011 high is clearly choppy/sideways-downwards (indicative of consolidations rather than a motive wave starting an extended decline).
b. RSI appears to have bottomed near the 50 support level; and
c. the MACD is coming off severe lows and seems poised to achieve a bullish crossover.

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