Silver and silver stocks are flying. Some knock your socks off in straight-line rallies. Pan American Silver (PAAS) has rallied nicely -- more than doubling in three months -- and today's upgrade by TheStreet Ratings quant service just gives you another reason to get exposure to precious metals.
It all started back in July -- yes, July. PAAS started basing and you started to see the accumulation with the rise of the On-Balance-Volume (OBV) line. But things really started to take off in January. Prices rallied over the 50-day and 200-day moving average lines. There was a golden cross in early March, and the OBV line began to accelerate to the upside in January. A bearish divergence in February and March with the momentum study failed to slow the rally. Bears, watch out!
This longer-term weekly chart of PAAS is also impressive. Prices based and have rallied over the 40-week moving average now that average line has turned up with a positive slope. The OBV line is rising on a weekly time frame and the Moving Average Convergence Divergence (MACD) oscillator is bullish. PAAS does have some resistance on the chart at $15/$16, and when it is cleared, we could see PAAS reach $20.