Posts Tagged ‘silver’

Charts: Gold and silver present very different pictures

From the always prescient Peter L Brandt – contrasting gold and silver charts. While gold appears to be forming a reverse head and shoulders formation, silver appears to be in a bearish channel. Click the link below for the full post and charts.

Categories: Gold, Silver Tags: , , ,

Chart Update: Pan American Silver PAAS

March 24, 2012 2 comments

Pan American Silver PAAS has been on a wild ride. It recently agreed to purchase Minefinders MFN. In theory, the market reaction has not been positive as the price of PAAS has fallen. However, it is possible that there is more than meets the eye.

First off, for context, let’s take a look at a 5-year chart of PAAS.

Pan American Silver Stock Chart

Pan American Silver Stock Chart by YCharts

As you can see, PAAS encounters some pretty stiff resistance near the $40.00 mark.

As a silver miner, PAAS also moves in concert with silver prices to a degree, so let’s look at a 5-year chart of the silver price.

Silver 5-year price chart

Silver 5-year price chart

Notice anything interesting about the PAAS stock price and the price of silver? Over the long term, the price of PAAS is rising in near percentage lock-step with silver.

Because silver and PAAS move together, the 5-year chart of PAAS doesn’t necessarily look that exciting.

PAAS 5-year chart 3-23-12

The PAAS 5-year chart isn't a thriller

More interesting is a more recent chart.

PAAS Chart 3-23-12

PAAS price is straddling the sell trigger line

Where the PAAS price goes will largely depend on the price of silver. While my research of the general state of the economy, central bank intervention in said economy, and fundamental supply and demand lead me to believe the silver price will rise long-term, you should do your own research and act accordingly.

Disclaimer: The above is for informational purposes only. This should not be considered investment advice. Any investment decisions are your own and should be made after conducting your own independent research and / or in consultation with a professional investment advisor.

Chart: Pan American Silver PAAS

March 19, 2012 2 comments
Pan American Silver PAAS Chart

The PAAS Chart Has Several Bullish Aspects

Pan American Silver (PAAS) has a 52-week low of $19.93 and has seemingly struggled with its price after agreeing to purchase Minefinders (MFN).

Despite this, its chart has some bullish aspects, including being near a 50/200 Day MA Crossover.

PAAS has been descending from its high of $43.06 since last April. You can see part of this descending line from the top left of the chart until it intersects with the ascending Andrew’s Pitchfork on the right.

As of the current time today, PAAS has managed to bounce off support at the bottom of the Andrew’s Pitchfork.

Pan American Silver Stock Chart

Pan American Silver Stock Chart by YCharts

PAAS rested right near that support of around $21.29 at the close on 3-18-12. You’ll also notice if you look carefully, that the bottom fork of the pitchfork and the sell trigger line are right on top of each other but will soon diverge.

I think as long as PAAS manages to stay within the pitchfork it should rise in price. I am thinking PAAS has put in its low price for the year. I don’t know if buying PAAS is like buying silver at a 93% discount, but I believe that with the purchase of Minefinders (MFN) you get a lot of silver and gold for a very low P/E of under 7.

Disclaimer: None of the above constitutes investing advice. It is for informational and entertainment purposes only. Please seek the counsel of a registered investment professional before investing. Didn’t your mother teach you anything?