Pan American Silver Technical Analysis (NASDAQ:PAAS)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. The PAAS stock chart pattern can give those who understand technical analysis an indication of which way PAAS stock is headed, but cannot predict with 100% certainty as to what can happen to the Pan American Silver stock price.
See Pan American Silver bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Pan American Silver stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Pan American Silver Moving Average
Moving averages help predict the price direction of PAAS stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Pan American Silver are mostly signals of long term trends and will help long term traders.
Pan American Silver Bollinger Bands
Bollinger bands comprise of a center line usually PAAS SMA, and two PAAS stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. The stock price is trading between the average and the lower band in the context of Pan American Silver bollinger bands.
Pan American Silver Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The Pan American Silver MACD indicator is below 0 indicating a bearish trend.
Pan American Silver Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of PAAS stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.