We wrote an article on Pan American Silver Corporation ticker: PAAS) in June 28 earlier this year. In this article, we argued the stock has a bullish outlook. We also presented a set of Elliott Wave Charts in various time frames. In this blog, we want to follow up and update the count of the stock.

The recent good news on the virus vaccine and the lack of second fiscal stimulus has contributed to the weakness in precious metals. Consequently, the stock price of PAAS also suffers further setback. However, despite the weakness in precious metals, ultra loose monetary policy by central banks and the expectation of further fiscal stimulus should continue to provide long term support to the precious metals.

PAAS Monthly Elliott Wave Chart

Monthly chart of PAAS above shows an impulsive rally from wave ((II)). Structure of the rally is proposed to be in a nest, and current wave ((4)) of III pullback should complete soon. If this count is correct, then wave ((4)) should not overlap with wave ((1)) at $26.2, so that will be the floor for the recent weakness.

PAAS Daily Elliott Wave Chart

Daily Elliott wave chart of PAAS above shows that the stock made a top on August 5 ($40.11) and since then continues to be in correction in wave ((4)). The decline looks to be unfolding as a zigzag structure where wave (A) ended at $29.52 and wave (B) ended at $37.28. Expect the stock to find support at the 100% – 161.8% fibonacci extension of (A)-(B) at $20.1 – $26.7. From this area, the stock should end wave (C) of ((4)) and resume higher or bounce in 3 waves at least.

PAAS 4 Hour Elliott Wave Chart

4 Hour chart of PAAS above shows that wave ((4)) pullback remains in progress and has scope to see further downside to reach 20.1 – 26.7 before buyers appear. The decline in the stock therefore is close to completion and it can soon resume the next leg higher or rally in larger 3 waves at least.

If you’d like to see regular Elliott Wave updates on stocks, indices, forex, and commodities, feel free to check our trial –> 14 Days FREE Trial. We cover 72 instrument in 3 groups and provide regular updates in 4 time frames, live session, live trading room, and more.

 

Impact Silver.  Another Jr metals producer and explorer that has a great looking chart, and what looks like, a triple nest.  If the nest is correct, then the upside on this stock may be very lucrative.  Impact Silver has a fairly clean chart, but again keep in mind, it is penny stock territory.   This chart has more history to it than some others.  And as mentioned above, from the low in 2016, the structure supports a possible triple nest.

Again, important to remember, that these miners follow the spot metal markets, Gold and Silver. So the primary expectation is for the miners to rally along with gold and silver, after the metals have struck a low.

We are going to take a look at chart in a couple of different time frames.  This is an OTC ticker for USA markets, the Canadian Symbol is $IPT and trades on the TSX Venture exchange in Canada.  The Canadian chart will have different pricing, but the structure will be the same.

Impact Silver Elliottwave Weekly View:

When looking at this stock on a weekly time frame, it aligns well with the GDX ETF.  Impact silver set a low in Jan 2018, at a price of 0.07. From there, it has 5 waves up into Blue (I), which peaked on August 1st, 2016.  After that, it has undergone a multi year consolidation, which ended in Blue (II) low in November 2018, at a price of 0.148.  From there, another nest in Red I and II are complete, and most recently, further nesting in black ((1)) and ((2)) is favourable.  Lets go a bit more in depth on the daily view.

Impact Silver Elliottwave Daily View:

On the daily view, this stock enjoyed a very respectable 630% gain from the 0.155 low Red II in March 2020 to recent July peak ((1)) at 0.98 .  Since then, it is favoured to be correcting in a double correction.

Since the March 2020 lows, the count is showing a clear impulsive structure into the July Peak. As mentioned above, our current expectation with gold and silver, is that there is still more downside possible.  With this in mind, I am looking for lower prices still on this stock.  There is a blue box extreme where buyers may show up for a bounce in 3 waves at least.  This area is from 0.477 to 0.225.

In conclusion, this stock seems to be tracking Silver, more than Gold.  And really started to outperform when Silver broke out above $19.  Presently, the chart is still favouring one more swing lower in a double correction. As this is a penny stock, it is important to use proper risk management.  The technicals on this chart are fairly clean, and I favour the price structure to track silver closely until silver sets a low also.

Risk Management

Using proper risk management is absolutely essential when trading or investing in a volatile stocks.  Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading.

Improve your trading success and master Elliott Wave like a pro with our free 14 day trial today.  Get free Elliott Wave Analysis on over 70 instruments including stocks like GOOGL, TSLA, AAPL, FB, MSFT and many many more.

$SLV Ishares Silver Trust Larger Cycles and Elliott Wave

Firstly there is data back to when the ETF fund began in 2006 as seen on the weekly chart shown below. The fund made a low in 2008 at 8.45 that has not since been taken out in price. It could have been up until The point of the spike higher in July 2020. You should be able to assume from the October 2008 lows to the April 2011 highs was a larger degree impulse ending from all time Silver lows either way.

Secondly, the decline from the April 2011 highs down to the May 2011 lows was five waves. Price held below the April 2011 highs during the bounce from the May 2011 lows to the August 2011 high.

The analysis continues below the weekly chart.

Thirdly, the cycle from the August 2011 high now appears complete. The red I , II & III decline to the December 2015 lows best looks as two Elliott Wave impulses. Next, the bounce to the August 2016 high was strong enough to suggest it had corrected the cycle from the red wave II highs in February 2012. From the August 2016 high the decline appears to be an Elliott Wave triangle structure that ended the wave “E” at the February 2020 highs. From this point in time the instrument printed a clean Elliott wave impulse lower into the March 2020 lows at 10.86.

In conclusion, down from the April 2011 highs SLV exhibits all qualities of an Elliott Wave zig zag  structure that now appears complete at this point. This is partially due to the bounce from the March 2020 lows. It was strong enough and apparently in five waves. This suggests the correction of the cycle up from the all time lows has completed. Near term while below the August 2020 highs silver can correct the cycle up from the March 2020 lows. Afterward a larger degree turn higher is expected again.

Thanks for looking. Feel free to come visit our website.  Furthermore please check out our services Free for 14 days to see if we can be of help.

Kind regards & good luck trading. Lewis Jones of the ElliottWave-Forecast.com Team