WPM pops to highest close since December 30, 2019
Wheaton Precious Metals Corp (WPM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WPM finished the week 5.08% higher at 29.99 after surging $0.98 (3.38%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over a month. Today's close at 29.99 marks the highest recorded closing price since December 30, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 29.33, the stock confirmed its breakout through the previous session high after trading up to $0.71 above it intraday.
Daily Candlestick Chart (WPM as at Feb 14, 2020):
Friday's trading range has been $1.06 (3.65%), that's far above the last trading month's daily average range of $0.67. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WPM.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, WPM actually lost -1.94% on the following trading day.
After trading as low as 28.98 during the day, the share found support at the 20-day moving average at 29.03. Prices are trading close to the key technical resistance level at 30.19 (R1). After having been unable to move lower than 28.95 in the prior session, Wheaton Precious found buyers again around the same price level today at 28.98.
Crossing above the upper Bollinger Band for the first time since December 30, 2019, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 29.03 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 30.25, upside momentum could speed up should the market be able to break out to new highs for the year. Trading close to December's high at 30.31 we might see further upside momentum if potential buy stops at the level get activated.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Wheaton Precious. Out of 39 times, WPM closed higher 71.79% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 48.72% with an average market move of 0.55%.