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Descending Triangle on Chart of Silver – Good Sign for Bears

June 8, 2014 at 15:08 by Vladimir Vyun

A triangle pattern has formed on the weekly chart of silver. Unlike the patterns on charts of gold and oil that were mentioned previously, the present triangle pattern is clearly descending. Such pattern forms when prices are falling down, bouncing from the support level, but each bounce is weaker than the previous one. Ultimately, prices break to the downside in most cases, meaning that the pattern is welcomed by bears. On the present chart, the yellow lines show the descending triangle pattern. The cyan line shows the level to enter short positions for those traders who want to bet on a downside breakout, while the green line suggests the level for taking profit in case such breakout indeed occurs.

Click the image to enlarge it to a full-size screenshot:

You can download the MetaTrader 4 chart template for this pattern.

If you have any questions or comments regarding this chart pattern for silver, please feel free to reply below.

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