Gold formed a rounding top on the short term chart during Wednesday's trading session. The pullback towards the close completes a retest of the Channel Up chart pattern illustrated here on the Autochartist 15-minute time interval.
While the bottom support for the Channel Up remains unclear as of yet, the rising trend line resistance is well defined and should indicate relative strength of the upswings during the rest of the current rally. Overall, the pattern remains early in its development and currently shows a Quality ranking of 6 bars.
Further weakness going into Thursday's session could initiate a retracement back towards the channel support. This would help to clarify the pattern with a retest of the $1,730 per ounce level. Range-bound trading between the support and resistance is anticipated for the near-term. However, the multiple retests of the top of the channel may signal an upside breakout on the horizon. Watch for a breach of the trend line above $1,750 per ounce to trigger a signal for a new trading range closer to the $1,800 level.
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