As the market pukes up the gold stocks today, SLW (Silver Wheaton Corp) looks to offer an objective long entry here on this tag of this downtrend support line as well as the deeply oversold reading. All previous oversold readings over the last decade+ resulted in rallies ranging from 40% to over 1700%.
SLW weekly July 20th
SLW will be added as both an Active Long Trade (i.e.- typical swing trade) as well as an Active Long-Term Trade idea here around the 12.70 level. T1 for the Active Long (swing) Trade will be 14.60 while T1 for the Long-Term Trade will be set at 16.55. Suggested stops for the swing trade will be any move below 12.07 while the suggested stop for the Long-Term Trade will be a daily close below 11.70. Additional targets are likely to be added to this trade should the charts on gold & the miners begin to firm up in the coming weeks as expected.
As with all gold & silver mining stocks as well as the metals themselves, this should be considered an aggressive, counter-trend trade. A more conventional entry would be to wait for some technical evidence of a potential bottom forming in SLW as well as gold, silver & the mining sector.