The Rising Wedge chart pattern in Gold futures may have executed a significant breakout in Thursday's trading session, with a major violation of key support triggering a downside price forecast on the Autochartist hourly time interval.
This Rising Wedge formation has been very consistent throughout the recent price rally back near $1,400 per ounce, as well as the ensuing correction. The latest sell-off began at the top of the Rising Wedge, adding technical merit to the chart pattern. Measuring an overall Quality of 7 bars, with high marks in Uniformity and Clarity, this is a fairly textbook Rising Wedge pattern for the Gold futures. The failure of the trend line support came on strong momentum, giving the Breakout indicator a full 10-bar reading.
If the projected price target forecast plays out according to the projections drawn from the Rising Wedge breakout, gold may see heavy selling to close out the trading week. The minimum forecast price rests at $1,371 per ounce, with a lower end of the range seen at $1,360. A close below this level may pave the way for a steeper sell-off on a longer term time frame.
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