After marching steadily higher in the uptrend phase of a Channel Up chart pattern, gold pulled back softly to set up a pivot point within the formation. The $30 per ounce span between the support and resistance trend lines that form the Channel Up creates a large potential trading range, while the lack of retracements so far suggest the pattern may still be in a fairly early stage of development. This is partially reflected in the average internal rankings for Quality, Uniformity, and Clarity. A continuation of range-bound trade within the channel will likely improve the rankings and become the dominant pattern for traders to position against.

Alternatively, follow-through momentum may enter next week's trading to puch the price above $1,740 per ounce and above the channel's trend line resistance. This would signal a premature breakout from the emerging pattern and signal a decisively bullish forecast for a commencement towards $1,800 per ounce once again. For further information on this and other Autochartist products, visit our website at

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