Sunday, March 20, 2016

SLW Silver Wheaton Daily Chart Overbot Rising Wedge Negative Divergence Golden Crosses in Silver and Gold Charts

Silver Wheaton prints a golden cross with the 50-day MA piercing up through the 200-day MA a bullish signal. As Keystone often mentions, as soon as a golden cross occurs that is typically when the stock or index reverses to the downside since creating that positive cross takes a nice long and strong rally and the move is typically running out of gas as the cross occurs. The golden cross does project higher prices a few months out as long as the golden cross remains. In the very short term, however, a retreat appears on tap.

For SLW, the RSI and stochastics are overbot, the red rising wedge pattern is bearish and the red lines show universal neggie d across all indicators. SLW is about to receive a spankdown. If you made money on it, exit stage right. The 16.0-16.5 area is a reasonable expectation over the next week or two, however, the golden cross is bullish as mentioned and more importantly the weekly chart remains long and strong with the RSI, MACD and money flow so there are higher highs ahead but not likely  until, say, early or mid-April.

If you are nimble, you can consider a potential quickie short trade playing the neggie d but you cannot stick around long since SLW will recover and move higher again. Another trade would be simply waiting and watching and when price comes down due to the neggie d smack down on the daily, a long can be bot to ride it back up say into April. The golden cross did not yet occur with SLV but it will likely occur this week. PAAS has a golden cross from two weeks ago and led the way for SLW.

For gold, GLD prints a golden cross to begin March. Ditto GDX and GDXJ. NEM prints a golden cross in late February so it led the whole shooting match. Also ABX. The GG golden cross has just occurred by only two pennies. GOLD (Rangold) is another one that led the way. NEM, ABX and GOLD show leadership among all the gold and silver plays as far as direction goes so they are three tickers worth watching. The gold and silver stocks are all in the same boat as the SLW chart above. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.