Wheaton Precious Gains 3.50% As Technicals Signal Bullish Continuation

Wheaton Precious (WPM) closed at $91.41 on July 21, 2025, gaining 3.50% for the session with a trading range of $89.7 to $92.17. This analysis examines the technical landscape of WPM using multiple methodologies to assess trend dynamics, momentum structure, and key price levels.
Candlestick Theory
Recent candlestick patterns show a bullish reversal signal emerging after a corrective phase. The July 21 session formed a decisive bullish candle that closed near its high of $92.17, engulfing the prior three days' range. This pattern suggests rejection of lower prices near the $89 psychological support. Key resistance is established at $93.24 (July 14 high), while strong support converges at $87.96-$88.32 (July 18 low and close). The long lower wick on July 21 indicates firm buying interest near $89.70, reinforcing this support zone.
Moving Average Theory
The moving average configuration reveals a bullish trend structure. Price remains decisively above the 50-day ($87.50 estimated), 100-day ($85 estimated), and 200-day ($75 estimated) SMAs. Notably, the 50-day SMA maintains its position above both longer-term averages, confirming the primary uptrend. The July 21 rally propelled price further above the 50-day SMA, reinforcing its role as dynamic support. This hierarchy of moving averages suggests sustained bullish momentum across all evaluated timeframes.
MACD & KDJ Indicators
The MACD histogram shows signs of bullish momentum regeneration as it converges toward the signal line following the July 21 advance. Meanwhile, the KDJ indicator presents a mixed signal: %K has surged to approximately 87, entering overbought territory above the 80 threshold. While this suggests near-term exhaustion risk, the absence of bearish divergence implies underlying strength. Traders should monitor for potential consolidation, but the momentum backdrop remains constructive for the intermediate trend.
Bollinger Bands
Volatility expansion is evident as price challenges the upper Bollinger Band near $92.50 following a period of contraction. The July 21 close in the upper band quadrant reflects strong directional momentum. Historically, similar expansions after band contraction have preceded continuation moves. The 20-day moving average at $89.50 now forms initial dynamic support. Band width expansion confirms increasing directional conviction behind the breakout.
Volume-Price Relationship
Volume analysis validates the bullish price action. The July 21 advance occurred on 1.53 million shares – 34% above the 30-day average – confirming institutional participation. This contrasts with the 1.14 million shares traded during the July 18 down day, indicating weak conviction behind pullbacks. The volume surge on upside resolution, particularly following declining volume during the consolidation, signals sustainable upward momentum.
Relative Strength Index (RSI)
The 14-day RSI reading of 54 positions WPM in neutral territory, recovering from a low of 42 during the mid-July pullback. This trajectory demonstrates strengthening momentum without immediate overbought risks. The indicator's mid-range position allows room for additional upside before testing the overbought threshold at 70. Notably, RSI divergence was absent during recent lows, supporting trend continuity.
Fibonacci Retracement
Fibonacci analysis drawn from the January 13 swing low ($55.75) to the June 5 peak ($95.23) reveals critical levels. The July 8 pullback low of $86.72 precisely respected the 23.6% retracement at $86.92, demonstrating this level's technical significance. Current trading above the 23.6% level ($88.90) maintains bullish positioning for a retest of the 0% level at $95.23. The 38.2% retracement at $82.52 now serves as major support should deeper retracements materialize.
Confluence and Divergence Assessment:
A significant confluence of bullish signals exists near the $89-90 zone, where moving average support, the 23.6% Fibonacci level, and recent price action align. The primary divergence appears in the KDJ indicator, where overbought %K contrasts with neutral RSI readings. However, this should be weighed against volume confirmation of the breakout and alignment of multiple time frame trends. Should price maintain above $89.70, the technical structure favors continuation toward $95 resistance.