Jim Cramer fields questions on shares through the “Lightning Spherical” section of his Mad Cash program. I get emails occasionally from readers of Actual Cash. One subscriber learn my three half 2021 outlook piece (see here, here and here.) and requested about Pan American Silver (PAAS) as I recommended a close to time period pullback within the treasured metals might occur because the Greenback Index was poised for a bounce. 

Let’s take a look at the charts of PAAS. 

On this day by day bar chart of PAAS, under, we are able to see that costs tripled from March to August and have since corrected that robust advance. Costs efficiently examined the rising 200-day shifting common line in November and earlier in December.

The buying and selling quantity has slowly decreased since March however the On-Steadiness-Quantity (OBV) line reveals solely a modest decline since August.

The Transferring Common Convergence Divergence (MACD) oscillator has just lately turned bullish once more with its transfer again above the zero line.  

 

On this longer-term month-to-month Japanese candlestick chart of PAAS, under, we are able to see the massive base sample going again eight years. The decrease shadows in latest months round $30 present that buyers are rejecting the lows.

The OBV line reveals an enormous base too and the MACD oscillator is bullish.  

On this Level and Determine chart of PAAS, under, we used weekly shut solely worth knowledge with a five-box reversal filter. Right here a longer-term goal of $83 is proven. I ponder what silver shall be promoting for?  

Backside line technique: The Level and Determine chart suggests a goal that’s fairly spectacular. Merchants ought to look to purchase a dip below $32 and threat under $29 within the subsequent few weeks.