Pan American Silver (PAAS) Recently Broke Out Above the 50-Day Moving Average

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After reaching an important support level, Pan American Silver (PAAS) could be a good stock pick from a technical perspective. PAAS surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.

The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.

PAAS could be on the verge of another rally after moving 7.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.

The bullish case solidifies once investors consider PAAS's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 7 higher, while the consensus estimate has increased too.

Investors should think about putting PAAS on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.

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