Chart of the Week: Pan American Silver
Hey everybody. Happy Wednesday. Time for our chart of the week. We’re gonna take a look at a silver miner, Pan American Silver. PAAS is the symbol. Let’s take a look at this one. Silver looks like it’s ready to make a break out here, joining its friend gold.
Take a look at this chart. So, as you can see, this stock had made some lower highs and lower lows here from its breakout back in January. And looks like it made a nice bottom over here back in June. It came down here the first time in about the middle of June, tested again towards the end of June and July. And made a nice pop in August.
Shows a couple of gaps over here. It gapped above the 50 day moving average and the 200 day moving average. And then it came down and tested that 50 one more time, and now we’re firmly above that 200 day moving average.
Think it’s gonna make a run towards this trend line up here – about $58. Stock is currently at $53, so that would be about a nice 10% move to the upside.
Where do we think it’s gonna go? I think eventually it’s going to go back up to the old highs here at around $69-70 with a little bit of momentum from the metal. Silver has not run as much as gold has, but I think it’s gonna catch up.
And I think that the technicals here, the indicators, like the MACD and the relative strength, look very sharp and strong and positive for PAAS. As long as they continue to support it, it’s a nice tailwind for the stock to keep moving up.
I think first stop here comes up at about $58, and then maybe about $61, $60.5 to $61, after that.
So take a look at Pan American silver. Thanks for watching everyone.
