Wheaton Precious Metals Could Keep Shining

The shares hit a one-year high of $52.76 last month

Fernanda Horner

Digital Content Manager

May 15, 2023 at 3:01 PM

Wheaton Precious Metals Corp (NYSE:WPM) stock is up 1.1% to trade at $50.88 at last check, while boasting a 29.5% year-to-date lead. The shares were just within a hair of their April 13, one-year high of $52.76, but have since taken a breather. However, a trendline with historically bulllish implications may provide just the boost shares need to come within reach of a fresh high.

The signal in question is WPM's 40-day moving average. According to Schaeffer's Senior Quantitative Analyst Rocky White's last study, the security saw five comparable signals during the past three years, and was higher one month later 60% of those times, averaging a 3.4% gain. A similar move would place the shares back above the $52 level.

WPM 40 Day

An unwinding of pessimism could push shares even higher. This is per WPM's 50-day put/call volume ratio over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 88% of readings from the last 12 months.

It's worth noting the security's Schaeffer's Volatility Scorecard (SVS) of 73 out of 100 indicates it has exceeded option traders' volatility expectations during the past year -- a boon for buyers.

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