XAUUSD - KOG REPORT!

KOG Report:

In last week’s KOG Report we suggested going long during the early part of the week a risk even though we had higher targets active on Gold. We said there could be an early push to the upside in the early sessions so we would have liked to see Gold complete the targets early to confirm a short term high before then taking a decline into the lower support levels. The first target we gave for the short was 1895 and below that 1860-65. In Camelot we mapped out the complete move suggesting the region to short the market at the 1935 level and where it would bounce to give the long before then going back into support. The market couldn’t have played any better for the move, we got the short term high and then the short from 1935 down into the 1896 price point giving a fantastic pip capture. We then identified the reversal pattern in Camelot and updated traders on here with the higher levels to look for from the bounce and reaction we got from support highlighting again that 1935 price point which was hit to a tee! A great week on not only Gold but all the other pairs we trade as well.

So, what can we expect in the week ahead?

We’re going to stick with a similar plan to last week where we will only be looking to long the market up here level to level with tight stops. 1935 is again sticking out and above that the 1950-55 price region, give or take a few pips either side. We’re expecting a correction which could catch traders out so unless we get a deep pullback we’re playing caution on longs with the bias on the shorts. The first level to look for is 1920 support which has been tested and broken with the price now attempting to attack it again. Support here could be an opportunity to take the level to level long back up towards 1930-35 and then look for the break or a reaction in price. The ideal scenario is the bounce from 1920 back up into the higher resistance levels for us to then attempt to short the market back down again.

We mentioned late last year that we were expecting this bull run and could just be an opportunity for traders to cover positions and get bulls in higher up before another decline in Gold. For this reason we’re going to play caution for the week, level to level up while we hunt for the opportunity to catch that short trade, if it happens! Please note, breaking and holding above that 1955 level can extend the wave towards 1975-85 so if they want to stretch again that’s most likely where they will take it before then injecting more volume on the reverse.

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As always, trade safe.

KOG