My near-term work indicates strongly that Silver Wheaton (SLW) ended a minor pullback at 33.60 off of yesterday's rally peak at 35.55. If accurate, this means that a new upleg is in its infancy and will extend the larger upmove from the Jan 25 low at 28.85 -- initially towards a test of 35.40/55 resistance (the 50 DMA and yesterday's high) and then to test the Dec-Jan resistance line, now at 36.75.

At this juncture, only a decline that breaks today's low at 33.60 will compromise my current outlook and indicate that the two-session pullback is morphing into a deeper correction prior to the anticipated next upleg.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.