Deutsche Bank Downgrades Pan American Silver (PAAS) – Cycles Point to Further Downside

The metals saw heavy liquidation on Tuesday.

Front month Gold futures traded lower by over 5 percent, Silver futures by over 13 percent and Platinum over 4%.

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.

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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 

pan american silver peas stock analysis outlook bullish higher chart image august 12

At askSlim 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 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.

pan american silver paas stock price indicators bullish august 12

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 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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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.