EARN25

Silver Stock Could Test New Highs Soon

Pan American Silver stock just pulled back to a historically bullish trendline

Managing Editor
Jun 19, 2020 at 12:49 PM
facebook X logo linkedin


Silver prices have been on a roll in June, and are headed for their second-straight week of gains. However, those gains have not necessarily translated to success for commodities issue Pan American Silver Corp. (NASDAQ:PAAS), which is sitting on a 7.3% month-to-date deficit. However, if past is precedent, there's reason to believe the silver stock could resume its uptrend in the coming months.

More specifically, according to data from Schaeffer's Senior Quantitative Analyst Rocky White, PAAS just came within one standard deviation of its 40-day moving average. Within the past three years, two similar signals have occurred, with the equity averaging a 21-day gain of 3%. The month started off so strong for Pan American Silver stock; scoring a nine-year high of $30.59 on June 2 and nearly tripling off its March 16 lows of $10.61. Longer-term, PAAS has more than doubled in the last 12 months.

Daily Stock Chart PAAS

Deutsche Bank chimed earlier this week with a price-target hike to $28 from $24.50. There's certainly room for more bull notes, considering five of the eight analysts in coverage rate PAAS a tepid "hold." Plus, the consensus 12-month price target of $29.43 is a modest 8% premium to its current perch.

Options look like a prudent play when weighing PAAS' next move. The stock's Schaeffer's Volatility Index (SVI) of 62% stands higher than just 26% of all other annual readings. This means that options players are pricing in relatively low volatility expectations at the moment. 

Plus, the stock's Schaeffer's Volatility Scorecard (SVS) sits high at 99 out of 100, showing that the stock has tended to exceed option traders' volatility expectations during the past year, a good thing for option buyers.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!