The precious metals continue to attract interest and Pan American Silver (PAAS) is starting to shine.
There are not that many pure silver plays, and PAAS makes the short list. Like the metal, PAAS has been reaching for a bottom for a long time. If you look at the chart, above, you should notice that things started to change for the positive in early August.
Prices made a small double bottom at $6, and then that level was successfully tested two more times.
Prices of PAAS have rallied above the 50-day simple moving average and now the slope of the moving average is positive. There is a bullish divergence between the double bottom in prices and a higher low from the momentum indicator.
Last, we can see that the On-Balance-Volume (OBV) line is rising with the price account, confirming the rally. A rally to $12 and then $15 seems possible for PAAS. Traders should risk a new low close.