Bullish Pennant on Daily Chart of Silver Suggests Move Further Up

A pennant pattern has formed on the daily chart of silver. The pattern appears after a sharp move in one direction followed by a period of consolidation which results in creation of a symmetric triangle. The pennant pattern is a continuation pattern, meaning that usually prices continue to move in the previous direction after a breakout from sideways movement.

On the present chart, the pattern itself is shown by the yellow lines. The cyan line offers the level for entering positions for those traders who want to place bullish bets in case prices do indeed go higher. The green line suggests the profit-taking objective.

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 Brent crude oil pattern. You can also trade it using the free Chart Pattern Helper EA.