A quick look at this two-year chart of Pan American Silver (PAAS:NASDAQ) shows that the recent pullback is most likely over. Why? Take a look at the previous peak, topping out at $27.68. The most recent low from late June bottomed out at $25.01.

Since then, PAAS has rebounded and is putting in higher highs, and higher lows. The stock is now trading over $28, and appears to want to test its all-time high of $32.46.

Want more support? That $25.01 bounce point coincides with the 38.2% Fibonacci retracement line drawn from the low back in June 2006.

Within five weeks, PAAS could be testing that all-time high… and I’d be looking for a breakout from there.

Enjoy,

S.R. Nunnally
Editor, Material Profits

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