The gold market has been getting the bulk of the attention lately, but silver prices have not been stuck in neutral. A rally in Pan American Silver (PAAS) has been developing for months.
PAAS has had many successful tests of the $5-$6 support area since July. The On-Balance-Volume (OBV) line bottomed in June. Prices have rallied above the 50-day and 200-day averages and the slope of the 50-day average is up. The Moving Average Convergence Divergence (MACD) oscillator is bullish and above the zero line.
This longer-term PAAS chart, above, shows how prices broke the 1-1/2-year down trend and closed above the 40-week moving average. The MACD oscillator is rising toward the zero line and a buy signal. Barring a sudden reversal to the downside, we project PAAS to try to rally towards $12. Remember to determine your risk and use a sell stop.