SLW is wayyy overbought and should be giving back gains in the very near future. If you examine the technicals, this stock is ripe for a fall....which it did today but regained with the Fed's announcement. This is a huge opportunity to purchase SLW Oct 26 Puts.
Here is why SLW is overvalued:
- RSI is at 71.66--overbought territory
- MACD is at a ridiculous 1.186--huge signal of overbought status
- Williams%R is at -12.65---again way overbought
- Slow Stochastics is at 85.39--overbought
- Lots of recent buying activity
As you can see, SLW is wayy overvalued and will be headed lower. I recommend buying SLW Oct 26 Puts. These will provide you with some very nice gains within the next few weeks when Silver Weaton takes a fall.
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