Gold futures may close out this week's trading at their lowest levels of the year so far, as steep losses in Thursday's session established yet another bearish formation on the intra-day chart. Autochartist has identified a very solid Pennant chart pattern on the 15-minute time interval, with a breakout to the downside already under way.
The pattern developed quickly and only measures 22 candles in width. Beyond that, the technical indicators rank well, with an overall Quality measure of 9 bars, as well as the Initial Trend and Breakout strength both measuring 10 bars.
The initial breakout from the Pennant found quick support to carry the price back up to the trading range the market was in during the formation's development. However, the trading action since has been subdued and there is not much strength indicated to the upside. The projected price targets from the breakout have not yet been achieved, and may hit during Friday's trading.
The forecast price range to complete the pattern would put the price of Gold between $1,331 and $1,338 per ounce, and possibly lower from there.
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