XAUUSD - KOG REPORT!

In last weeks KOG report we said we would be bearish on Gold and target the lower KOG targets as long as the price stayed below the 1830-35 price level. We said we were expecting Gold to create another high on the chart higher than the week before. We said we would be looking for the price to open and test the low then begin the incline into the higher resistance levels giving us that higher high. We were expecting there to be strong resistance above which we didn’t see, instead towards the end of the week we saw a really aggressive move to the upside taking us to a close above the 1850 level. Fortunately, during the week with our daily reviews we managed to keep traders in the right direction and not sell at the immediate resistance levels that we were initially looking at.

So now we’ve seen quite a break of structure on Gold on Friday which threw a lot of traders off. We did say on Friday we would be taking a step back from the market and if anyone is trading to trade level to level testing zones with smaller lots.

So what can we expect in the week ahead?

1850 key level, below that 1835-40 for signs of support. This is the first indication we are continuing to the upside. We have higher targets which we have shared starting at 1872 and above that there is one which is sitting at 1888. What we want to see is how the market opens and if it challenges that lower support region first, if it does, we want to see 1850 first and below that we want to see test the 1840, 1835 region. Based on support here we feel this would represent a good opportunity to long the market in to the higher resistance levels. If however, we see this push up on opening and hit our 1865-70 level and find resistance, we will be looking to short the market down into the lower support levels.

Below is a chart showing the active targets at the moment, as long as the price stays above the 1835 region:


Our plan:

Market open, price goes up towards the 1865-70 level and find resistance, we want to test the short trade down towards the first target of 1850 and below that 1840 to be safe. If the price ranges here on opening and then starts a technical retracement down towards the 1850 level and below that 1840 we will be looking to long the market into that 1868-70 level where we will take a majority of the trade of the table. A lot of traders were questioning why we kept going on about the 1830-35 levels in the last few KOG reports, now you can see why we said be careful in this region!

We will update members and follower over the course of the week as we usually do.

As always, trade safe.

KOG