PAA,Pan American Silver Corp.

Just two weeks ago we suggested that this stock was a buy at $15, even if the count was incorrect as in that event the downside was still limited to, perhaps $13, insignificant difference considering the minimum expectation for a rebound to $20 under both scenarios. We are up almost 30% and would expect this stock to go further to $25 and perhaps higher. Here is the chart;

paa june 2012

On closer inspection the objection to one count was that there was no alternation but there actually is ; wave 2 is an irregular flat and 4 a normal flat. The only remaining question is whether or not the drop from $40 to $15 was the entire move, and therefore we would be in a bull market, or just waves 1,2 and 3 with 4 and 5 still to go.  If you want to play it safe, take the $5, if you are a little more entrepreneurial go for the $25 target (see also previous blogs). By the way, IMG, IAMGold is possible in the exact same position.