The volatility in gold remains at record levels, making the technical support and resistance points on the Channel Up chart pattern most useful for determining short term swings in the market. With precious metals reacting to ongoing turbulence in stocks, bonds, and currencies, the potential for a breakout from this channel also remains high. Breakout levels are currently around $1,805 per ounce to the upside, with a move to $1,760 needed to initiate a downside target. Given that gold has gained nearly $300 per ounce over the last month of trading, a profit-taking liquidation could lead to fast, heavy selling if this level is breached.

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