Silver Wheaton To rebound

SLW just closed above two year support trend line determined by Dec 2011, Oct 2011 and Jan 2011 lows. Usually share price closing around this trend line has been followed by rally. Moreover in the case of Dec and June lows divergence (between the price trend and the Moving Average Convergence Divergence - MACD indicator) suggested the upcoming reversal. Another point to consider is the price relative to its 200 day simple moving average . In the last three cases the price bottomed at more than 20% before turn back. In addition both stochastic indicators Stochastic index and Relative Strength Index suggest the stock is oversold with reading under the 30 (reading above 70 indicates overbought level).


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