Sending to the entire list, since this update works as a gold sector update as well.
Wheaton Precious Metals (WPM), the former Silver Wheaton has been holding up better than much of the sector in part, I assume, because when things were positive it was not participating on the upside.
Hence the long basing pattern as noted in the title. A longer-term view shows the extended, grinding road to nowhere for all of 2017, with a recent upward bias as the 50 day moving average crosses above the 200 day average. Now, keeping in mind that such ‘golden crosses’ are sometimes met before long with a smash in the other direction to punish the believers, I want to walk a line between not being shy about showing certain patterns and technical states while continuing to trust you not to over react and to have patience.
WPM, like RGLD, FNV, SAND, etc. is not hurt by rising mining cost inputs like oil, as are the actual miners. I think a fair bit of its flat posture is because of its purer focus on gold and silver (compared to other major streamer/royalty companies). That’s obviously a negative with gold and silver in the dumps (of note, gold smashed the SMA 200 today, which was our original downside target). WPM would theoretically be a purer play whenever the precious metals go bullish.
In a perfect world (very much unlike the one I’ve been operating in lately) the big launch in the 1st half of 2016 was corrected harshly in the 2nd half of 2016. The long consolidation would be a sold out ramp to the next leg up. That is pretty much how I see the sector as a whole as well. But WPM is so far very orderly and neat in playing to that scenario.
It’s hard to feel bullish now and that is the point of markets. Sometimes you have to do what is hard. Let’s remember that we’d planned for the sector to bottom out in December or January all along and it is only dutifully working to that script. The time for caution was back when HUI topped out at 220, and extreme caution when it lost key support at 195-200. Now the sector is on a plunge that could be the final act of this correction. Either be thinking brave or be sidelines (or both, laying in wait).
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.