Thursday, January 10, 2013

1/10: SLW rallying & at critical resistance/breakout level

SLW update:

Silver Wheaton is at critical trendline resistance and is showing very positive strength.

I believe the stock will need to consolidate for the rest of the day before it can muster up the energy to break through this resistance trendline, however, once this trendline is breached/captured I think SLW will thrust towards the red resistance trendline very quickly (next week).

Gold and silver, too, are showing positive technical indications of a continued short-term rally, however, it is very important to remember that this rally in SLW - and the precious metals complex in general - is in the context of a continuing corrective pattern and that there should be one more additional sell-off in February that will present a wonderful buying opportunity for a powerful metals rally for the remainder of 2013.

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