The first trading day of October saw gains in the price of gold, as end of quarter selling pressure from last week appears to have left the market in a position for a short covering rally. Gold futures pushed off swing lows to move back above the $1,660 per ounce once again, and appear to be moving towards resistance provided by the Rising Channel seen here on the hourly chart.

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The resistance at the top of the Rising Channel chart pattern currently rests at slightly above the Monday closing price at $1,670 per ounce, which will be the next level for traders to look for technical strength. A move above this level would be encouraging for a longer term move back to the previous highs above the $1,920 level, and diminish the odds of another retest of last month's low below the $1,550 support.

If the current strength reverses in Tuesday's session, the channel provides key short term support at the $1,630 per ounce price level. Failure for this support level to hold would initiate a downside breakout, though the current acceleration of the uptrend suggests a move higher from here is the likely path of least resistance.
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