Silver Wheaton Corp. (SLW), a silver mining and sales company, appears technically to have ended a correction, which means a new upleg in its powerful bull market could be emerging.

My technical and pattern work is "warning" me that the correction of the most recent upleg in SLW (from 13.50 to 42.34) is at or very near conclusion in the vicinity of Friday's low of 30.91. The correction to date retraced about 40% of the prior upleg, which satisfies "healthy" parameters for a bull market pullback.

If my work proves accurate, then SLW is in the early basing-reversal stages of a new upleg that should propel prices to new highs above 42.34 -- on the way to 46.00-49.00 thereafter.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.