In today’s article, I decided to share with you my insights from today’s Quick Gold Alert. Have a nice read!
February 14, 2025
Another day, another round of warning signals for the buyers.
Before we dive into the world of technical analysis, a quick heads-up—today’s alert is going to be a little different… and pretty short. Why? Well, it’s Friday, it’s Valentine’s Day, and honestly, everything we’re seeing on the charts boils down to one simple question:
Are we looking at a double top, or is the rally north still a credible alternative?
Let’s take a look at the charts below and break it down.
Technical Picture of Gold
Looking at the above charts, we see that although gold futures started Friday (Asian trading hours) with another pro-growth price gap, the proximity to Wednesday’s all-time high lured the bears to the trading floor.
During European trading hours, they launched their attack, sending the price below the lower border of the starting price gap, fueling even more downside momentum.
As a result, gold futures dropped below the previously broken upper border of the short-term green rising trend channel, invalidating the earlier breakout, which combined with the breakdown under the lower border of the very short-term black rising trend channel is not exactly great news for the bulls—especially when you factor in the sell signals generated by the 4-hour indicators.
What does it mean for the futures?
That means yesterday’s assumptions are still in play.
If the bulls do not manage to invalidate the earlier breakdown under the lower border of the very short-term black rising trend channel (marked on the 4-hour chart) and let their opponents dive under this support line the way to the 38.2% Fibonacci retracement, the Wednesday’s low, the upper line of the medium-term orange rising trend channel or even the barrier of $2,900 will be open.
However, considering the breakdown under the mentioned black channel, we can see a decline even to around $2,875, where the next green support zone (created by the 50% Fibonacci retracement [based on the entire Feb. upward move] and the bottom of the first correction from Feb.7) is.
Finishing today’s comments, please keep in mind Tuesday’s quote:
(…) in this area the range of the downward movement will be (more or less) equal to the height of the mentioned very short-term black channel (I marked them with grey rectangles on the chart), which may encourage the bears to start taking profits from their short positions.
Summing up, gold bulls failed to break above Tuesday’s all-time peak, which encouraged their opponents to act, triggering a pullback below the pro-growth starting gap, the upper line of the short-term green rising trend channel, and the lower border of the very short-term black channel. Taking all the above into account and combining it with the sell signals generated by the indicators, it seems more likely than not that further deterioration is just around the corner – especially if the buyers do not manage to invalidate the earlier breakdown under the black channel (just like they did on Wednesday).
Have a profitable day and a wonderful weekend, and see you on Monday!
Anna Radomska