Silver (along with gold and crude oil) has been resurrecting its depressed price this year. So far, it’s up more than 50% this year, and it appears to be just hitting its stride.
Naturally, mining companies have benefited greatly from the rise in price; the best of the bunch is Silver Wheaton. This company is one of the largest out there, and its stock has been rising sharply since the lows of January. The uptrend channel is well defined, and while we are at the top of it, the price action has been spectacular.
Volume has been swelling lately. The recent breakout past 22 was impressive – it was guided by the MACD buy signal. Momentum indicators are overbought and the RSI is super strong here, so this stock may pull back to that 22 area soon. If that happens, we’re looking at a nice entry point.
As long as silver keeps running and demand doesn’t wane, we could see Silver Wheaton continue onward. The highs it reached in 2011 would not be out of the question.
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About Silver Wheaton
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. The company was founded in 2004 and is headquartered in Vancouver, Canada.
