Gold: Tuesday’s Slide Could Spell Disaster for Bulls
Satendra Singh | Feb 14, 2024 11:47
After analysis of the movements by the gold futures since Feb. 2, 2024, I find that the big bears finally attacked on Feb. 13, 2024.
This fall was evident enough to keep the trend downward for a long as Tuesday’s move by the gold futures resulted in a supper bearish crossover in the daily chart.
On Wednesday, a hotter-than-expected inflation reading for January spurred more fears that the Federal Reserve will keep rates higher for longer.
In the daily chart, gold futures turned volatile, the same as I predicted in my last analysis finally find a breakdown below the sign support at $2000 on Feb.14, 2024, 50 indicating weakness likely to persist during the upcoming weeks if gold futures see a breakdown below the immediate support at $2000.
On the upper side, gold futures could not sustain above the significant resistance at 9 DMA, indicating a steep surge in selling pressure below the 9 DMA, currently at $2036.8571.
A downward move by the gold futures below $2000 indicates if the yellow metal sustains below this immediate support steep slide could hit the second support at 200 DMA, currently at $1979, before February ends.
Gold futures behaved exactly, same as I predicted in my last analysis about this week’s opening and follow-up moves on Monday matters a lot as the gold bugs could take a decisive move on Tuesday amid the continuity of wobbly moves by the gold futures.
In the case of the upward move, only a sustainable move above the 9 DMA in the daily chart could favor the bullish sentiments that will attract big bears to continue in case of every upward move up to $2041.
On the downside, a breakdown by the gold futures below the significant support at $ 2010 could push the yellow metal to hit the next Signiant support at 200 DMA, which is at $1979 in the daily chart.
Watch my attached video, which I uploaded on Feb. 4, 2024.
Disclaimer: The author of this analysis may or may not have any position in the Gold futures. Readers are requested to take any long or short trading position at their own risk.
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