Monday, June 20, 2011

Silver Wheaton: Early Buy Signal

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Not hearing much on silver now days...yet several weeks ago it was the opposite. Now is the time to start looking and either buying or adding to positions. ITZ is taking a look at Silver Wheaton SLW chart today. We have a 'Falling Wedge' pattern -- a bullish pattern that begins wide at the top and contracts as prices move lower. Falling wedges definitely slope down and have a bullish bias, which cannot be realized until a resistance breakout (around $32). One should wait for a breakout to confirm the signal, however a ITZ sees positive divergence signals. One could take some managed risk here buying around $30 (could go to $29) setting a $28 stop. Adding to position on a breakout over $32.

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