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.