Today, the metals are undergoing heavy liquidation. Front month Gold futures are down 5.2%, Silver futures are down 13.3% and Platinum is down 4.5%. In this post, we will review our analysis on Pan American Silver (PAAS). Deutsche Bank downgraded PAAS from Buy to Hold and raised their price target from $28 to $34. At 2:00 PM ET, PAAS is trading at $32.03, down 11.6% on the day. The stock is still up more than 201% from the lows made on March 16th. Let’s review our weekly cycle analysis.
Pan American Silver (PAAS) Weekly Chart – annotations by askSlim.com
At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.
askSlim.com Technical Briefing: The weekly cycle analysis suggests that PAAS has formed an intermediate-term high and is in a declining phase. The next projected intermediate-term low is due 8/10 – 9/21. Weekly momentum remains positive.
On the upside, there is an intermediate-term resistance zone from 38.43 – 40.11. On the downside, there is an intermediate-term support from 28.84 – 25.36. For the bears to regain control of the longer-term, we would need to see a close below 25.36.
askSlim.com Sum of the Evidence: PAAS is in a corrective phase in a longer-term positive cycle pattern. Given these conditions, we see a likelihood that the stock tests the intermediate-term support at 29 by late August.
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