We have looked at Franco-Nevada (FNV) , Newmont (NEM) , SSR Mining (SSRM) , and Agnico Eagle (AEM) . Today we check in on Wheaton Precious Metals Corp (WPM) .
In this daily bar chart of WPM, below, we can see that prices made a strong rally from the middle of March to early August. WPM has been correcting slowly lower until a low in late November. Prices have traded sideways since late November.
Trading volume has been increasing since late October but the daily On-Balance-Volume (OBV) line has been steady/flat since July.
The Moving Average Convergence Divergence (MACD) oscillator has been below the zero line since late September but is now close to an upside crossover and potential buy signal.
In this weekly Japanese candlestick chart of WPM, below, we can see a mixed chart. Prices have made a strong rally the past three years. A correction has been unwinding since the summer and we can now see that support is developing around and just below $40. Prices have been trading below the cresting 40-week moving average line.
The OBV line has been steady since August and has not weakened along with the price action.
The weekly MACD oscillator is below the zero line in sell territory but it has been narrowing towards a potential cover shorts buy signal.
In this daily Point and Figure chart of WPM, below, we can see a potential upside price target in the $63 area.
Bottom line strategy: The charts of WPM have not quite turned bullish but we see support developing around $40. Traders should be patient and wait for the OBV line to turn up before buying. $36 is our risk point.
