Pan American Silver Corp. (PAAS) was upgraded today to a "Buy" rating by TheStreet's quantitative service. I find that interesting in that the stock has been in a downtrend since July 2016. Silver bulls are a different from other bulls in that they often profess price targets for the shiny metal of $100 or $150 or more.
I remember it was trading at $1.40 per ounce when I entered "the business" in 1973. Hard to rap my mind around that, but let's try to be a little more objective and look at the latest charts and indicators.
In this daily bar chart of PAAS, below, we can see that prices have made lower lows and lower highs the past 12 months. Prices are roughly in the middle of their high/low range of the past three months. Right now prices have not made a lower low or below $14 and they have not made a higher high above $17.60 or so. The downtrend would be broken if PAAS rallied above its January highs to a higher high.
A reversal would get a chartist to buy PAAS, but let's keep looking. The On-Balance-Volume (OBV) line has been declining since June of 2017 and recently has not made a new low. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line and could turn up to signal an outright go long signal.
In this weekly bar chart of PAAS, below, we can see that prices held the $14 level in 2016 and again in late 2017. Prices are below the declining 40-week moving average line but it won't take much of a rally to move above it.
The weekly OBV line has been moving lower since last April but shows some improvement the past three months. The weekly MACD oscillator turned up to a cover shorts buy signal in early January.
In this Point and Figure chart of PAAS, below, we can see a possible longer-term price target of $19.95 being projected. A decline to $14.86 will weaken this chart.
Bottom line: You can follow fundamentals. You can follow technical analysis. You can follow quantitative techniques. Whatever you like and understand. For me the charts have not yet turned bullish but if you are a buyer here the chart tells me to risk below $14.86 and look for a longer-term advance to around $20.