After a dramatic rally higher, which resulted in a strong intraday uptrend, Gold’s short-term chart looks ready for a correction lower. Small corrections did occur as Gold approached the eventual session high; however, prices were unable to sustain the steep uptrend and the 15-minute time frame now seems ready to roll over. When it comes to reversals however, a sentiment shift must take place in order to get sufficient follow-through: with the Channel Up pattern alert, just such a reversal opportunity may be on the horizon.

The pattern’s uptrend line support is currently plotting at 1246. A break below this level could signal not only that the trend has lost buying support, but that prior support at 1243 could be both tested and broken. (This 1243 level is the only significant downside hurdle to a larger move lower.) The two-bar Autochartist Initial Trend reading confirms the transition to a more sideways market direction on the 15-minute chart.