We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.
Today he is going to take a look at the technical picture of Silver Wheaton Corp. (NYSE_SLW).
This week let's take a look at the stock chart of SLW.
SLW is a Silver mining stock and tends to follow the price of Silver pretty closely.
For stocks with the MarketClub system, we use the monthly Trade Triangle to tell trend, and the weekly Trade Triangle to time the trades.
SLW made a base and this week has made a breakout of the base.
On the breakout of the base SLW put in a monthly MarketClub green Trade Triangle, and as of right now all 3 Trade Triangles are green which puts the odds with higher prices.
Markets will often come back and test the breakout, so SLW might trade sideways to lower for a few days, but if the breakout is good, SLW should either just continue higher from here, or continue higher after some consolidation.
The MACD techncial indicator is on a buy signal which also is a good sign that higher prices will follow from here.
With a MarketClub scores of +100, SLW is definitely a Chart to Watch right now, as higher prices are probably on the way.
Thanks,
Jim Robinson
Profit Trading.com
