For today's chart we've chosen to take a look at
Analog Devices Inc (NYSE:
ADI) because it has been forming a
descending triangle pattern. As you can see from the chart below, this pattern is created by drawing one trendline that connects a series of lower highs and a second trendline that has historically acted as a strong level of
support. We expect that traders will watch for a move below the support because it will signal an uptake in downward momentum. If the bears are able to send the price below the $35.30 level then we'll shift our focus and watch for a drop toward the 161.8%
Fibonacci extension level, which is currently near $31.50.
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