In addition to my positive view on Hecla Mining ( HL) , which I discussed on Real Money here, Pan American Silver ( PAAS) is also looking promising.
Let's check the charts before proceeding. 
In the daily bar chart of PAAS, below, I can see the bottoming price action since August. The shares have found buying interest in the $16-$14 area the past five months. Five months is not a long length of time but it can be long enough for someone to build a decent position. Prices are trading above the rising 50-day moving average line but still below the declining 200-day line.
The trading volume shows a big surge in activity in early November and that is when the On-Balance-Volume (OBV) line begins a rise. A rising OBV line is a sign that traders have been more aggressive buyers of a security. The Moving Average Convergence Divergence (MACD) oscillator crossed the zero line earlier this month for an outright buy signal.
In the weekly Japanese candlestick chart of PAAS, below, I can see that the stock has been in a declining trend from early 2020 around $40. The shares are trading below the declining 40-week moving average line.
The weekly OBV line is showing some improvement from September. The MACD oscillator has crossed to the upside for a cover shorts buy signal. The candles show lower shadows and a reversal pattern in late October and early November.
In this daily Point and Figure chart of PAAS, below, we can see that the shares reached an upside price target of $15.76. A trade at $17.59 could refresh the uptrend.
In this second Point and Figure chart of PAAS, below, I used weekly price data. Here I can see a potential price target in the $25 area. A rally to $25 would probably break the downtrend line from early 2020.
Bottom-line strategy: Traders could probe the long side of PAAS on weakness below $16 risking to $13. Our price target is $25 for now.
