Wheaton Precious Metals Corp. (Friday’s close $27.03) rallied from $14.51 in January, 2016, to $40.80 in August of the same year (A-B), reversed the trend and declined to a low of $22.63 at the end of the year (C). Subsequently it traded below $30 until recently (dashed line). The recent rise to $33.85 signalled a breakout and the start of a new up-trend (D).
Behaviour indicators including the 40-week Moving Average (40wMA) and the rising trend-line (solid line) confirm the bullish potential. The stock is currently in the midst of a minor correction; only a sustained decline below ±$26 would be negative.
Point & Figure measurements provide targets of $36 and $39. Higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com