We reported a major up-trend and higher targets on numerous occasions during the past few years. Wheaton Precious Metals WPM-T (Friday’s close $57.58) became extremely overbought in mid-2020 (A) and was far above its 40-week Moving Average (40wMA). It started a correction below a falling trend-line (dotted line) and then settled into a bullish technical pattern known as a “W” formation (dashed lines). The recent rise above $60 (shaded area) confirmed the breakout from this pattern and the start of a new up-trend (B).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is good support near $57-58; only a sustained decline below the 40wMA (currently near $54-55) would be negative.
Point & Figure measurements provide targets of $69 and $74. The large “W” pattern supports higher targets.
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Monica Rizk is the senior Technical Analyst of Phases & Cycles Inc. (www.phases-cycles.com). Chart source: www.decisionplus.com
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