Pan American Silver Corp. (NASDAQ: PAAS)
About Pan American Silver Corp.
Pan American Silver Corp. engages in the exploration, development, extraction, processing, refining, and reclamation of mineral properties. It owns and operates silver mines located in Peru, Mexico, Argentina, and Bolivia.
Take a look at the 1-year chart of Pan (NASDAQ: PAAS) with added notations:
PAAS hit a high of around $19 back in August, and eventually fell down to $15.50 last month. After hitting that low, the stock rallied back up to the $19 resistance (green), completed the cup (blue), and then the handle (red), of a cup and handle chart pattern. The break above the $19 resistance confirmed the bullish formation.
The Tale of the Tape: PAAS confirmed a C&H pattern. A long trade could be entered on a pullback down near the $19 level, with a stop placed under the point of entry.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
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Christian Tharp, CMT
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