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Bulls Hope That Symmetrical Triangle on Weekly Chart of Silver Means Renewed Strength

Summary:
Silver rallied in the first half of the year but was moving largely sideways since August with decreasing volatility. As a result, the symmetrical triangle pattern has formed on the weekly chart of silver. That is good news for bulls as it is a continuation pattern, meaning that prices will more likely to resume movement in the previous direction. Considering that the previous move was up, the pattern suggests that a breakout up is more likely than down. On the present chart, the yellow lines show the symmetrical triangle itself. The cyan line is situated 10% above the pattern’s width (which is equal to the size of the last notable rally) and offers an entry point for traders willing to bet on an upside breakout. The green line is situated at the pattern’s width above the triangle

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Silver rallied in the first half of the year but was moving largely sideways since August with decreasing volatility. As a result, the symmetrical triangle pattern has formed on the weekly chart of silver. That is good news for bulls as it is a continuation pattern, meaning that prices will more likely to resume movement in the previous direction. Considering that the previous move was up, the pattern suggests that a breakout up is more likely than down.

On the present chart, the yellow lines show the symmetrical triangle itself. The cyan line is situated 10% above the pattern’s width (which is equal to the size of the last notable rally) and offers an entry point for traders willing to bet on an upside breakout. The green line is situated at the pattern’s width above the triangle and provides a profit-taking objective.

You can click on the image to see a full-size version:

Bulls Hope That Symmetrical Triangle on Weekly Chart of Silver Means Renewed Strength

The chart was built using the ChannelPattern script. You can download a MetaTrader 4 chart template for this silver pattern. You can also trade it using the free Chart Pattern Helper EA.

If you have any questions or comments regarding this symmetrical triangle pattern on the chart of silver oil, please feel free to submit them via the form below.


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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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