Silver may not get as much media attention as gold, but it has climbed higher this year and Pan American Silver (PAAS) has been one of the beneficiaries. The rally isn't over.
In this daily chart of PAAS, above, we can see the strong move to the upside PAAS has made from its 2015 lows. Traders had many opportunities to buy PAAS at or near $6. Prices have more than doubled in a short span of time. Near term we might see the price of PAAS move sideways, but a breakout to a new high for the move up should happen soon. Dips to the rising 50-day simple moving average line have been a buying opportunity the past five weeks. The rising On-Balance-Volume (OBV) line supports the price strength with buyers accumulating longs. There is an April-June bearish divergence between the equal price highs and the lower momentum reading, but that may only delay an expected breakout to new highs.
In this weekly chart of PAAS, above, we can see that the downtrend from near $35 to $6. The On-Balance-Volume (OBV) line worked lower until late 2015 and this suggests that investors have been liquidating long positions in PAAS for some time. In early 2016 we have a reversal. Prices rallied above the now rising 40-week moving average line. The OBV line turned up, signaling more aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator is firmly above the zero line with a go-long signal. PAAS could stay in a $14-$16-plus trading range until it decides to move higher, but an upside breakout should happen soon. And $20 is our next upside price target.