XAUUSD - KOG REPORT!

XAUUSD -

In last weeks KOG Report we said we would remain bearish on Gold and that resistance levels should be used for short entries to target the lower levels. We said we would like to start the week with the price challenging the higher resistance levels which it did straight from the open and continued for most of the week. Our support level gave us a great long entry which took us straight up into the higher resistance zone we were looking for. Please check last weeks KOG Report. We suggested we will trade with caution keeping our 1833 level in mind anticipating the price to try to capture that level. We said we would look for the 1818-20 price point to start testing the short trades for the lower targets. The weeks action gave us a ranging market between the levels of 1815 and 1828 which gave us an opportunity to scalp the levels up and down and finally on Friday capture the short that we wanted from the 1826 level.

So what can we expect in the week ahead?

We’re going to stick with the 4H chart from last weeks KOG Report to start with. Again, we will remain bearish on this as long as it stay below that 1825-7 level. We still have our higher target of 1833 which we will keep in mind but at the moment the structure looks like the price will want to target the lower levels before coming back up.

We will be looking for another attempt on the lows again this week hopefully beating the lows of last week around the 1785-80 level. 1814 and 1826 again are important levels to look for resistance where we will be looking to add to our short positions as long the level holds strong.

We still have a target of 1770 below and more targets way below that level but again we will trade it level to level keeping within our risk parameters and not over exposing to the market. As KOG members know we don’t trade with large stop losses so we have to be very precise with our levels and trades.

Our plan for the week:

We will be looking for the price to open and potentially test that lower support level of 1812-1808 where if we find support its likely we will see the price try to retrace some of the move targeting the higher resistance levels. We will be looking for the levels 1814 and above that the level of 1820 where we would like to see resistance and the price to exhaust (if it gets there). This is the level we will be looking to test the short trade again targeting the lower levels of 1804-6, 1797 and below that 1785. Our target for the month is 1770 but we won’t hold out for it, rather, if we see the decline we will take a majority of profits and leave a runner if the price wants to keep going.

We’re not expecting huge movement this week, maybe more of this ranging market which will keep accumulating in anticipation of FOMC the week after. Unless they price it in!

Please trade this carefully, there is a potential double top, however, there is still an Excalibur target of 1833 which is very much active, so give yourself room for to remain flexible in the markets without trading with huge stop losses. A break and hold above the 1826-8 level will turn this again short term and target that 1830-35 level and above that 1845. We’ll update as usual if our plans change.

As always, trade safe.

KOG