After last week's plunge in reaction to a minor downward guidance adjustment (it does not take much these days), Silver Wheaton (SLW) has rebounded strongly and held its gains during today's crazy volatile session.

My pattern work indicates that the orthodox high in the aftermath of the June 20 low at 29.70 occurred on July 18 at 40.08 and that all of the action since then into Friday's (7/29) low at 35.43 represents a completed correction. If accurate, that means that a new upleg has started (at 35.43) and that upside price acceleration should be forthcoming in the hours directly ahead, with the upside being possibly a hurdle of 40.50.

Only a break of Friday's low will compromise my current outlook.

 

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