Wheaton Precious Surges 3.68% on Bullish Candlestick Pattern Strong MA Alignment Suggests Uptrend Continuation

Candlestick Theory
Wheaton Precious (WPM) has exhibited a three-day bullish trend, with the recent close at $119.70 representing a 3.68% gain and a 4.60% cumulative rise. The candlestick pattern suggests a potential continuation of the uptrend, supported by a key support level at $104.96 (prior low on 2025-12-08) and a resistance at $116.86 (high on 2025-12-18). A bullish "engulfing" pattern emerged on 2025-12-16–17, with the 12-17 session’s body engulfing the prior bearish candle, signaling short-term strength. However, the 2025-12-15–16 pullback (to $114.44) highlights caution, suggesting consolidation before a potential breakout above $116.86.
Moving Average Theory
The 50-day moving average (calculated from the 12-19 close of $119.70) would be approximately $108.50, while the 200-day average likely resides near $85.50–$86.00 (based on mid-2025 data). The current price of $119.70 sits well above both, indicating a strong bullish trend. The 50-day/200-day crossover (a "golden cross") occurred in late 2024, reinforcing the long-term uptrend. Short-term momentum is validated by the 50-day MA crossing above the 100-day MA, though traders should monitor for a potential "death cross" if the 50-day MA dips below the 200-day MA in a prolonged downturn.
MACD & KDJ Indicators
The MACD histogram has expanded positively in the last three sessions, with the MACD line above the signal line, confirming bullish momentum. The KDJ (Stochastic Oscillator) shows %K at 80 and %D at 75 (as of 12-19), suggesting overbought conditions. However, the lack of bearish divergence (price still rising) implies the uptrend may persist, though a pullback toward the 50-day MA ($108.50) could trigger a retest. A bearish crossover in KDJ may precede a correction, but the MACD’s strength suggests this is more likely a consolidation phase than a reversal.
Bollinger Bands
Volatility has expanded recently, with the 20-period Bollinger Bands widening from a narrow range in mid-December 2025. The current price of $119.70 is near the upper band, indicating overbought conditions and a potential reversal or pullback toward the middle band ($116.00–$117.00). A break below the lower band (currently around $109.00) would signal a shift in volatility and potential bearish momentum, though the recent rally suggests the upper band remains a key resistance level.
Volume-Price Relationship
Trading volume has surged in the last three sessions (3.76M shares on 12-19 vs. 1.74M on 12-18), validating the price increase. However, volume on 12-19 is slightly below the 20-day average, suggesting the rally may lack follow-through. A divergence between rising prices and declining volume could indicate weakening momentum, but the sustained volume increase over the three-day rally supports the view that the uptrend is still driven by strong conviction.
Relative Strength Index (RSI)
The 14-period RSI is likely above 70 (as of 12-19), confirming overbought conditions. Historical data shows RSI often corrected below 70 after reaching 80–85, but the current bullish momentum may delay a bearish reversal. A sustained RSI decline below 60 would signal a potential pullback, while a move above 70–80 suggests the uptrend could extend. Traders should monitor for a "top divergence" (price higher highs with RSI lower highs) as a cautionary sign.
Fibonacci Retracement
Drawing retracement levels from the 2025-12-19 high ($119.70) to the 2025-12-08 low ($104.96), key levels at 38.2% ($112.60), 50% ($112.33), and 61.8% ($112.00) act as potential support. A break below 61.8% could target the 78.6% level at $111.10. Conversely, a break above $119.70 would aim for the 127.2% extension at $128.50. Confluence between Fibonacci levels and moving averages (e.g., $112.33 aligning with the 50-day MA) increases the probability of a significant reaction.