Pan American Silver Corp (PAAS) is a leading mining company engaged in the production and sale of silver, gold, zinc, lead and copper. This stock topped out in early August 2020 at $40.11 a share. Since that high pivot, the stock price has steadily declined and now trades at $29.36 a share. Traders should note, the stock has now fallen below its important 50-day moving average. This puts the stock in a weak technical position on the charts. Pan American Silver Corp (PAAS) stock is still trading above its 200-day moving average, but this moving average is now minor support. A daily chart close below the 200-day moving average should signal more downside for the shares.
The next major support level for Pan American Silver Corp (PAAS) stock will be around the $25.00 level. This important support level is where the stock has a major retrace level from the March 2020 lows to the August 2020 high. It is also where the stock broke out in June 2020. Often, prior breakout levels will serve as major support when retested. This level presents and excellent long side risk / reward trade setup.
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