Another Bullish Pennant Pattern on Chart of Silver

A bullish pennant chart pattern has formed on a weekly chart of silver. A month ago, the same pattern could also be spotted, thought that time it was on a daily chart. Unfortunately, the previous pattern was not confirmed as prices went below the borders of the pattern, invalidating it. It is important to note that prices were moving largely in a range since then, meaning that silver has not yet lost its bullishness entirely. Moreover, the bullish pennant pattern on the weekly chart suggests that an upside breakout may yet occur.

For those who want to bank on prices moving higher, the present chart offers price targets suggested by the pattern. The lines have the same meaning as in the previous bullish pennant chart. The yellow lines indicate the pennant itself. The green line provides a profit-taking objective for the bulls. It is derived by flipping the pole of the pennant to the upside. The cyan line is an entry point, derived by moving the upper border of the pennant by 10% of its distance from the bottom of the pole.

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

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.

Update 2016-08-19: The pattern does not seem to be valid anymore as the price has broken below the lower border:

Silver - Bullish Pennant on Weekly Chart - Post-Cancel Screenshot

If you have any questions or comments regarding this bullish pennant on XAG/USD chart, please feel free to submit them via the form below.