The price of silver has been under pressure since December in a drag on stocks like the Pan American Silver Corporation (PAAS) . However, there are oversold indications that support a tradable relief rally. A generic silver futures contract has strong support near $22/troy oz., denoted by the shaded area on the chart, where it turned up from oversold territory. This suggests silver prices will rise within the context of their long-term trading range, which is capped by resistance near $25.50/troy oz. A rebound in silver would likely benefit beleaguered mining stocks like PAAS, which has been downtrending over the short- and long-term. The chart now shows signs of downside exhaustion based on the DeMARK Indicators, which are a source of counter-trend signals. When the broader market consolidates, we tend to see mining stocks outperform given their defensive qualities. Relative performance for PAAS versus the S & P 500 has been so bad that it could be good, in that it should be better insulated when profit taking occurs to the detriment of the market’s leadership. PAAS looks poised for support discovery near its low from 2018 ($12.12), which we would use as a stop-loss threshold given the risk inherent to counter-trend positions. The cloud model (shaded area on the chart) can be used as a gauge of intermediate-term upside; a breakout above the cloud would mark a long-term bullish reversal for PAAS. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. 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