Has Silver Wheaton (SLW) Reached a Technical High?

Taking a quick look at the chart the question is: Is this a double top or can (NYSE:SLW) blow right through it and make a new all time high? The technical indicators are now in the overbought zone with the RSI standing at 71.92, so tread carefully. The chartists may well take profits here and who could blame them?

However, there is still a little room to squeeze a tad a higher before we get a serious breather come along and spoil the fun. And should SLW exceed and hold above its previous high of $42.34, it will be into uncharted waters and it could well go on a bit of run. It all depends on silver prices, of course, which are pretty volatile and will remain so for some time to come.

Although we are of the opinion that silver prices have further to go, we opted to cash in now as the time premium would erode the value of these options and silver might just experience a pull back. In which case, we could be left with nothing.






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