Pan American Silver Corp. (NYSE: PAAS, TSX: PAAS) is a silver producer with mines and exploration projects across the Americas. It also produces gold and other base metals.
On the monthly Elliott Wave chart, wave ((II)) is described as ending at $5.70. Wave (I) rose to $40.11, then wave (II) fell to $12.16.
Monthly Elliott Wave Structure
Within wave (III), wave I reached $28.60 and wave II retraced to $20.55. Wave III later extended to $69.99, followed by wave IV to $52.16.
The analysis states that as long as $5.70 holds, pullbacks may form 3-, 7-, or 11-swing moves. These are presented as corrective phases within a longer upward structure.
On the daily chart, the move from 28 February 2024 begins at $22.08 and wave I ends at $28.60. Wave II returns to $22.08.
Wave ((1)) rises to $42.57 and wave ((2)) drops to $33.08. Wave ((3)) reaches $55.85, wave ((4)) dips to $49.61, and wave ((5)) tops at $69.99.
Daily Chart Levels And Options Framing
Wave IV then finds support at $52.16. The outlook keeps $22.08 as the key level, with 3-, 7-, or 11-swing pullbacks referenced.
Looking back at the structural analysis from 2025, the view was that Pan American Silver was in a long-term upward trend where pullbacks would offer buying opportunities. This has been validated as the stock found support and now trades firmly above those correction lows. This strength coincides with the spot price of silver, which has been consolidating over the last few months near $32 an ounce, a historically significant resistance level.
For derivative traders, this suggests a bullish stance is warranted, making long call options an attractive strategy for the coming weeks. We are looking for a decisive break of the prior high at $69.99, an event that could trigger a rapid price increase. By purchasing out-of-the-money calls with expirations in the next quarter, traders can position for this potential upside with defined risk.
A more conservative strategy would involve selling bull put spreads, which profits from the stock staying above a certain price. This aligns with the core idea that corrective dips will be shallow and find support. Given the major correction in 2025 ended at $52.16, we can use levels above this point as the short strike for spreads, collecting premium while anticipating continued stability or upside.
This outlook is supported by wider market trends that have developed since last year. The Silver Institute’s most recent data from late 2025 showed industrial demand for silver grew over 12%, largely driven by the expansion of solar and electric vehicle manufacturing. Pan American Silver’s Q4 2025 earnings report also beat expectations on higher realized metal prices and improved operational efficiency at its key mines.
The main risk to this view is the long-term pivot at $22.08, which has remained the foundation for this bullish structure since 2024. Any positions should be managed with this level in mind, as a break below it would invalidate the current upward thesis. Therefore, traders should monitor price action closely and adjust their positions if the stock fails to hold its recent support zones.
