Thursday, December 20, 2012

12/20 - SLW update (critical support holding)

Once again, I admit that I was premature in calling for a bottom on Silver and Silver Wheaton yesterday... however, we now have several indications that a bottom may finally be in and that we are next going to attack the red resistance trendline near $39.50-$40.00 (marked Wave X).

Key support/bottom indicators:

a) the bears tried to take SLW below the key $34.71/$34.79 level but the stock has rallied to close ABOVE that level.
b) SLW has also closed above the declining green support trendline; and
c) the low band on the DAILY Bollinger Bands is $34.78, which has held today.

I expect the next week or so to be very strong for SLW...





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