With Silver attracting new interest from investors lately as a defensive haven alongside Gold, Pan American Silver (PAAS.TO) has rocketed up the ranks in the SIA S&P/TSX Composite Index Report, soaring up from deep in the red zone back into the Green Favored Zone for the first time since the summer of 2020. PAAS.TO has jumped 165 spots in the last month, including 6 places yesterday to 59th position.
Over the last six months, Pan American Silver (PAAS.TO) has been building a base for recovery from a long-term downtrend. Three times in recent months, attempts by bears to push the shares under $20.00 only to be rejected by bullish support. Twice the shares have rebounded on volume, a sign bargain hunters and other supporters have stepped in. A pattern similar to a bullish head and shoulder base has been forming and a bullish Golden Cross of the 50 and 200-day averages has occurred.
PAAS.TO closed back up above $25.00 yesterday and a breakout close above the January high near $25.50 would signal the start of a new recovery trend. Should that occur, potential resistance tests may appear in the $31.50 to $33.00 area based on measured moves and a downtrend line, then the $35.00-$37.00 area based on previous highs. Initial support appears at the 50-day moving average near $22.90.
A new recovery trend has been emerging in Pan American Silver (PAAS.TO). A Spread Triple Top breakout in January was encouraging, but the ensuing correction bottoming out at a higher low was even more significant as an indicator of increasing underlying support. Recently, the shares have clawed back lost ground, calling off a recent bearish double bottom signal and generating a bullish Low Pole Warning.
A close above $25.60 would complete a double top breakout and signal the start of a new upleg. Should that occur, vertical and horizontal counts and
downtrend line suggest potential resistance in the $27.65 to $28.75 area, followed by $34.40 and $37.25 which are based on previous column highs. Initial support appears near $23.15 based on a combination of a 3-box reversal and a retest of the January breakout point.
With a perfect SMAX score of 10, PAAS.TO is exhibiting strength across the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.