This Big Cap Silver Stock Is Lined Up To Buy – Mike Swanson (10/09/2019)

Gold and silver have pulled back after gold hit $1550 an ounce around Labor Day. Dips and pullbacks are what happen during big bull trends when something is in a full stage two advance in which the 150-day and 200-day moving averages are sloping up to act as support.

The way to play such trends is to buy dips in the strongest stocks in a sector in such a trend. This recent dip in the metals prices is now creating consolidation buy points in many big cap mining stocks.

One really lining up right now with a nice buy entry point is Wheaton Precious Metals. Check out the chart.

After taking a hit in the first half of September off of its highs WPM has been going sideways to form a simple triangle consolidation pattern. A close above $28.50 in the coming days would represent a breakout to the upside. Notice that the pink 20-day Bollinger Bands for WPM are now coming together to suggest that a big move is about to start.

Personally I own this stock and think it could be bought here with a simple stop loss order below $26.00, but I realize most people need to see a big up for confirmation before they buy.

Now we are heading for a key moment for the financial markets with what is going be the resolution of this week’s trade talks between the Trump administration and China.

I talked about this (including my plan to deal with them even if they fail) with Jim Goddard of www.howestreet.com in an interview you can listen to here.

-Mike



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