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Silver Wheaton Corp. Message Board

  • bazthefiend bazthefiend Jun 24, 2010 8:38 PM Flag

    Technically speaking

    Cup/handle or reverse head and shoulder pattern. Either way, we are looking at a potential major move up for silver shortly. A break above $20 very bullish. GLTA.

    http://www.barchart.com/chart.php?sym=SIN10&t=BAR&size=M&v=1&g=1&pct=&p=WN&qb=1&style=technical

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    • Looks like the Cup and Handle on SLW is almost complete. Pivot point at 21.50. Will it break out next week?

      • 1 Reply to bazthefiend
      • The breakout point was $22 on the Canadian slw chart, but I prefer to reference the silver chart when doing these calculations. Silver hasn't quite broken the top part of the cup, yet. That's ok, this seems a case of the shares leading the metals. So, its highly probable silver breaks above $19.55.

        The rules say a cup and handle breakout on the silver chart takes silver up $2.00 to $21.50. But also, since $21.50 is the previous high, it seems even more compelling this is the initial target price.

        Using the leverage ratio of silver%increase:slw share price increase:slw warrant price increase, this means

        10%:25%:77%

        While the silver wheaton shares were up 5% yeterday, my warrants lagged and were only up 10%.

        Unsurprisingly, with the warrants now in the money there is good liquidity at each bid and ask lot, roughly $20K at the bid and $20K at the ask. With the current warrant price at $12, every 1 cent move in share price is translating into 1 cent move up in warrant price.

        Break out the calcuator to see what 0.01/21.50 v 0.01/12.00 yields, can't beat it.

        Basically, every 13% gain in silver price equals 100% gain in SLW B warrants.

        I'm pumping, but at the same time educating, because I don't think a lot of people understand warrants trade like shares. You buy and sell them like shares, you don't need margin to buy them. You suffer the bigger increase, but also suffer the bigger losses.

        Sorry I hijacked the subject towards warrants at the end...

        Good trading
        chemaes

    • I know these interpretations are relative, but the inverse head and shoulders was back in the Dec to Mar time frame.

      What's forming now, over the last month looks like a cup and handle. I think the rule says a $3 move is in order, up.

 
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