Silver Wheaton Corp (NYSE: SLW)

Silver Wheaton Corp. operates as a precious metals streaming company worldwide. It has 19 long-term purchase agreements and 1 early deposit long-term purchase agreement associated with silver and gold relating to various 29 mining assets.

Take a look at the 1-year chart of Wheaton (NYSE: SLW) below with the added notations:

After its summer rise, and fall decline, SLW is now basically sitting right where it was in the spring. Since that time, you will see that the level of $18 (blue) has commonly appeared as either support or resistance for the stock. Currently, SLW is sitting just under that level.

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The Tale of the Tape: SLW has a key level at $18. A trader could enter a long position on a break back above that level with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on rallies up to $18.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT

@cmtstockcoach