Yesterday, Silver Wheaton (SLW) climbed above its April down trendline at 42.20 and is starting to accelerate to the upside toward our optimal next target of 43.60/85.

This morning, SLW gapped up to a 3-day recovery high at 43.86, just besting its prior high at 43.85 from April 15. That said, SLW needs to sustain above 43.85 and then thrust towards 44.80-45.20 to imbue the pattern off of Monday's low at 39.95 with extremely bullish form. That would suggest SLW is heading for a retest of its April 8 high at 47.60.

 

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