Silver Wheaton Corp. trading in a range

Mar 23rd, 2015 – Comment

The momentum indicators signalled a buy at $23.00 and are currently suggesting that investors can expect more buying in the near term.

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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.

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Hi Lou,

I listen to all your updates on AM640 and I am appreciative of all the topics you cover.

I’m hoping you can do an analysis on Silver Wheaton Corp. I own shares of SLW and would like to know your thoughts on this company for a long position.

Thank you,


Hey Anthony,

Thanks for the assignment and for your support. This will be the fourth time that I review the case for  Silver Wheaton Corp. (SLW TSX) since 2010. The last time was on March 11, 2013 when the shares were trading for $31.73. Bob wanted my view of the stock and the research unearthed a number of patterns that needed to be added to his evaluation. The shares had been selling off and needed to hold support at $31.00. The MACD and the RSI were gently turning higher but it was advised that SLW needed to build a base if it wanted to make a case for a longer term investment.

Unfortunately SLW could not hold support at $31.00 and traded as low as $18.59 by late June of 2013. Another scout of the charts will help identify if the stock exhibits enough positive patterns to justify putting your hard earned capital at risk.



The three-year chart outlines a trading range that has been established since the June 2013 low. There is resistance at $30.00 and support near $23.00. SLW has oscillated through the range four times since 2013 providing multiple opportunities to trade for profit. In October of 2014 the MACD and the RSI both signalled a buy as the stock touched a 52-week low of $18.92. The run to resistance near $30.00 by late January 2015 was concurrent with sell signals from the MACD and the RSI as the shares became overbought.










The six-month chart illustrates the lift off the 52-week low in late October which got the stock moving higher to near $30.00 by late January 2015. The retreat to support at $23.00 by early March was followed by a rise to resistance at $25.00. The momentum indicators signalled a buy at $23.00 and are currently suggesting that investors can expect more buying in the near term.

SLW is a trading stock. The best way to manage these shares is to trade them in the range and watch for opportunities arising from breakdowns and breakouts.

Next time I will inspect the charts of Labrador Iron Ore Royalty Corp. (LIF TSX) for Gordon

Make it a profitable day and happy capitalism!


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