Big “Price News” from the Silver Complex

Price action of note in the silver market: Silver Wheaton (SLW) just notched a short-term breakout…  
 
Regular readers know we consider Silver Wheaton one of the premier silver plays in the market. Silver Wheaton isn’t your average mining stock. It doesn’t operate mines or explore for mineral deposits. Instead, it finances lots of early-stage silver projects… and collects royalties when those projects start producing silver. This makes the company a diversified, leveraged way to profit from rising silver prices.#-ad_banner-#
 
In 2009, with shares trading around $13, we noted how this stock was enjoying one of the strongest uptrends in the market… and could explode higher in a precious-metals bull market. About two years after our note, SLW had tripled in price. But like all big moves, this one needed time to “digest” its gains before going higher. That’s just how the market works.
 
As you can see in the two-year chart below, SLW spent 2011 “digesting” in a volatile, sideways range… which frustrated both buyers and sellers. During this sideways move, sellers twice managed to knock SLW down near $27. The stock rebounded both times. And just this week, the stock “broke out” to its highest level in five months. SLW is resuming its bull market.