SLW Strength Triggers a Near-Term Buy Signal that Has Significant Upside Potential (for The Miners)

Below is what we discussed late yesterday, when Silver Wheaton Corp. (SLW) pushed up to key resistance at 12.70.

This morning, SLW has printed 12.80, and higher, at 12.90, as it breaks out to the upside from a near-term Point & Figure perspective. The next immediate target is 13.30-13.60. MJP 11/19/15

In that SLW made a new low print Mon. (11/16) at 12.00 off of the recovery-rally high print at 15.30 (circled), the dominant near-term downtrend remains intact.

Although SLW has climbed about $0.30 off of the 12.00 low print, which has triggered a new up-column of Blue X's, let's notice that the upmove has not inflicted any damage to the dominant downtrend.

To inflict damage, SLW must climb above 12.60/70, and print 12.80 on my enclosed, near-term Point & Figure chart. Barring such a 12.80 print, all of the action between 12.70 and 12.00 represents a digestion period within the confines of the post-15.30 downtrend.

While it is tempting to enter or to add to long positions here-- against the prior base-like formation between 12.00 and 11.10, I would rather await strength and confirmation that SLW has established another significant low within its bottoming process. MJP 11/18/15