Wheaton (WPM): Further Downward Movement

Wheaton (WPM): WPM

Due to growing interest in the gold market, we've decided to include a mining stock in our analysis, specifically Wheaton Precious Metals Corporation, a Canadian company that focuses primarily on gold mines. We start with the weekly chart to examine this company. It's important to note we're dealing with Canadian dollars, not to be confused. We've completed the first 5-wave cycle, although not the most aesthetically pleasing, at 76 Canadian dollars.


Since then, we believe there should be further downward movement to complete Wave C and simultaneously the overarching Wave II. We expect to enter the range of 50 to 61.8% retracement, approximately at the level of Wave (A) as we can see more clearly on the daily chart. The subordinate wave structure also clearly shows that we're in a Flat structure. Based on this, we expect to see a 5-wave downward structure.

Should the rising gold prices cause an increase instead, we would invalidate the bearish scenario once we surpass the levels of 64.42 Canadian dollars and then 71.4 Canadian dollars. If this does not happen, we continue to expect to see Wave 3, 4 & 5. Incidentally, we've also precisely completed Wave 2 at the 78.6% level. Therefore, we are very confident there should be further decline before we consider long-term entries in the mining stock of Wheaton.