Wheaton Precious Gains 4.09% To Extend Rally As Technicals Signal Bullish Momentum

Wheaton Precious (WPM) advanced 4.09% to close at $95.87 on August 4, 2025, marking its third consecutive daily gain and delivering a cumulative 5.35% return over this period. This momentum reflects strengthening bullish sentiment but warrants technical validation against broader indicators.
Candlestick Theory
The recent price action for Wheaton Precious shows a pattern of resilience. The August 4 session formed a robust bullish candle with a close near the session high ($95.87 vs. high of $95.91), following two smaller positive candles from August 1 and July 31. This sequence suggests accumulation and diminishing seller conviction. Key resistance is now evident at the July 22–23 swing high ($96.40–$96.83), while immediate support is established at the August 4 low ($93.20), aligned with the July 30 trough ($91.00). A decisive breakout above $96.40 would signal continuation potential.
Moving Average Theory
Wheaton Precious exhibits a robust long-term uptrend, trading decisively above its 50-day, 100-day, and 200-day simple moving averages. The 50-day SMA (approximately $89.60) maintains its position above the 100-day SMA (~$85.80), which in turn exceeds the 200-day SMA (~$76.50), confirming a bullish stacked configuration. The consistent price holding above these averages—particularly the 50-day SMA acting as dynamic support during July retracements—underscores sustained upward momentum. This alignment suggests the path of least resistance remains upward barring a breakdown below the 50-day SMA.
MACD & KDJ Indicators
The MACD (12/26/9) shows a bullish trajectory, with the MACD line crossing above its signal line in late July and widening into early August. This expansion reflects accelerating upward momentum, reinforced by the histogram’s positive gradient. Concurrently, the KDJ oscillator presents an overbought signal, with the %K and %D lines converging near 80—a level indicative of short-term exuberance. While this KDJ positioning flags potential consolidation risk, the MACD’s persistent strength suggests pullbacks may remain shallow.
Bollinger Bands
Price action has consistently hugged the upper Bollinger Band (20-day SMA ±2σ) throughout the three-day rally, reflecting strong directional conviction. The bands themselves expanded notably after a late-July volatility contraction period, signaling resurgence in directional volatility. This expansion during an advance typically denotes trend confirmation rather than exhaustion, though proximity to the upper band implies limited near-term upside before reversion risk materializes. Support is anchored near the mid-band (20-day SMA ~$91.80).
Volume-Price Relationship
Volume trends validate the recent breakout, with August 4’s advance of 4.09% accompanied by substantial turnover (1.55M shares). While volume did not eclipse the July 22 surge (3.03M shares; +4.72% gain), it notably exceeded the 50-day average, confirming institutional participation in the move. The absence of volume divergence during the rally underscores its technical legitimacy. However, diminishing volume on the prior two up days (August 1 and July 31) warrants monitoring for sustainability.
Relative Strength Index (RSI)
The 14-day RSI has surged to ~73, entering overbought territory (>70) for the first time since April. Historically, such RSI levels preceded short-term consolidations in May and July, though never reversed the core uptrend. Current momentum may sustain slightly overbought conditions, but traders should note that RSI >75 would intensify reversal risks, particularly if coinciding with bearish candlestick patterns. RSI divergence is absent, matching the recent price highs.
Fibonacci Retracement
Applying Fibonacci levels to the swing low ($76.50 on May 14) and high ($95.91 on August 4) yields critical retracement thresholds at $91.33 (23.6%), $88.50 (38.2%), and $86.20 (50%). The 23.6% level ($91.33) aligns precisely with the late-July consolidation floor, reinforcing its significance as a major support zone. For future pullbacks, this $91.00–$91.33 confluence area (linking Fibonacci and horizontal price support) represents a high-probability demand zone.
Confluence and Divergence Observations
Strong confluence exists between the bullish moving average stack, volume-backed price breakout, and MACD acceleration, which collectively validate the uptrend. While KDJ overbought signals and RSI >70 introduce short-term caution, the absence of bearish divergences across oscillators mitigates reversal urgency. Critical resistance at $96.40-$96.83 remains the key hurdle for continued gains, supported by Bollinger Band expansion. Conversely, failure to breach $96.40 may trigger profit-taking toward $93.20-$91.00 support. Investors should prioritize the $91.33 Fibonacci/horizontal confluence level as a potential entry juncture should retracements occur.