For today's chart we've chosen to take a look at Analog Devices Inc
) 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.