The bullish pennant in gold has failed like the first one did, almost exactly the same but not quite.
Both had strong resistance lines to overcome so maybe it is not too surprising. The downside target must be not far from $1300, which is where there should be some support, which was resistance in early July and also right back to late June, as the two horizontal lines on the chart above indicate.
Rick Ackerman's comments on www.kereport.com today were that smart money may be accumulating gold and cautiosly not letting prices rise too fast as they do so, presumably stepping back from buying on any breakouts.
That might mean that we are getting Jim Sinclair's famous "Swiss Stairs" formation and perhaps, if we are optimistic, we can already see 3 stairs formed on the daily chart as of now.
I wrote a little piece a long time ago in 2009 showing a Swiss Stairs formation in gold from that year, following the bounce from the late 2008 low. I hope you don't mind my sharing it with you.http://1000gold.blogspot.co.uk/2009/11/jim-sinclairs-swiss-stairs-in-gold-2009.html
Jim Sinclair always said this formation was the smart buying coming into a market, presumably in good size but carefully. Accumulation and mark up: