XAUUSD - KOG REPORT!In last weeks KOG Report we said we would like to see the market get some more buyers in a little higher up before again taking a decline. For that reason we were looking for the 1830-35 price point to get targeted and wanted to short the market from there. We said we wanted to short it back down into the 1815, 1810, 1800 and 1797 levels which the KOG target being 1785. All but one of our targets was achieved which is the 1833 price target. Another successful week for KOG followers and members on Gold.
So what can we expect in the week ahead?
Lets start by saying we’re still bearish on Gold. The chart suggests to us that we have lower levels to target and resistance levels should be used for short entries to target the lower levels. Longs should be traded with caution and targets should be immediate resistance levels.
We would like to see this go higher to start with as we still have that outstanding target of 1833 which is a bit far fetched given the structure but there is a possibility it could be achieved, so lets keep this level in mind while we’re trading this week. Keeping that in mind lets look at the immediate level of 1812-14 as the first target level and above that 1818-20. These are the levels we will be looking to test the short trades for the lower levels which are active. We have a support level at around 1795-2 which could be the first test on during the early session, this level could represent an opportunity to go long towards the resistance levels above. This was shared on our NFP and FOMC posts last week.
Or Plan:
We will be looking for the market to pullback a little on opening back down towards the 1795-92 level, if this level acts as support this could be an opportunity to long the market into the immediate resistance levels of 1797, 1804, 1808 and above that 1812. We would like to see resistance form at these levels and not get any aggressive candle body closes above key levels. If this happens then we will be looking to short the market down into our KOG level of 1770 as the first target.
The flip side to this is if we open and continue going up following on from the movement we saw on Friday. If this happens we will wait patiently for resistance to form above to short the market for the lower levels.
As we said we’re going to trade with caution this week as we still have the Excalibur target of 1833 active. We have shared the daily chart below which shows the trend we’re in and the potential for them to take this up towards the 1850-55 level before again dropping the market. For this reason use the levels on the chart to trade level to level as we usually do with the bias being bearish below 1820-24 and lower target level of 1770-1768.
We’ll update during the week as we go along.
As always, trade safe.
KOG
