Is Now the Time to Buy Silver Wheaton Corp. (SLW) Stock?

Silver Wheaton Corp. (USA) (NYSE:SLW) just touched its 40-day moving average, meaning it could be an opportune moment to buy the silver stock

May 19, 2016 at 11:33 AM
facebook X logo linkedin

Silver Wheaton Corp. (USA) (NYSE:SLW) has been shining on the charts this year, and options traders have gotten behind the outperforming silver stock. At the same time, however, the shares recently pulled back -- possibly presenting a buying opportunity. Below, we'll examine SLW's potential buy signal more closely.

As stated previously, SLW has been trekking higher, following in the bullish footsteps of the precious metals sector. Year-to-date, the silver stock has added 53.5% to trade at $19.06, and hit an annual high of $21.14 as recently as May 2. All the while, the shares have been assisted by support at their 40-day moving average.

Speaking of which, SLW pulled back to this key trendline earlier today. Historically, this tends to be a bullish signal for the stock. Looking back three years, the shares have touched the 40-day six times, and in the ensuing week, have finished higher five times. On average, the silver stock has advanced 2.1% during that time frame.

Options traders certainly appear to have lofty expectations. Across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 4.16 SLW calls for every put -- with the resulting call/put volume ratio ranking in the 73rd annual percentile.

Elsewhere, on the sentiment front, the brokerage crowd is firmly behind SLW, with 12 of 14 analysts calling it a "buy" or better -- and not a single "sell" recommendation to be found. Also, short interest is very low, representing less than 2% of Silver Wheaton Corp.'s float. That said, short interest did rise 27.8% in the latest reporting period, so some of the recent call buyers may be short sellers looking for upside protection.

Let us help you profit from market volatility. Target big gains in short order with a 30-day trial of Schaeffer's Weekly Volatility Trader!


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI