This chart takes a look Silver (NYSEARCA:SLV) on a monthly since the 1970’s. Numerous times Silver created a bearish ascending triangle at each (1). When this pattern forms, the majority of the time the asset falls in price by a large percent.
Silver bucked the odds at each (1) and broke out to the upside, where very strong rallies soon followed.
Over the past couple of years, Silver looks to be creating another bearish descending triangle pattern, with support coming into play at $14. This pattern suggests the Silver will decline in price following a break of support.
Silver bulls would love to see it buck the odds of this pattern and breakout to the upside as it did at each (1). If it would succeed, Silver could blast off.
The key to this pattern is the support level at $14. If Silver is to blast off, support must hold!!!