In last weeks KOG report we were looking for some bullish momentum to target that 1820-23 level where we suggested we would like to see resistance and not get a close above. The price moved up towards 1830s and rejected aggressively which gave us another good opportunity to short Gold towards the lower support levels.
What are we looking for this week?
We would like to see the price find support during the early session, it would not surprise us to see continued selling on open so we would like to see the 1745-50 levels hold. We will be looking to establish a short term bottom around these areas and then target the long trade towards 1785-90 initially. We still think this has room to go lower during the weeks ahead but we’ll wait and see how the price reacts at every resistance level.
Be aware, institutional selling usually continues, we’ve broken out of the consolidation range and there is a huge possibility that we can see more selling pressure on Gold. Lets trade it how we see it and trade it with caution. Look for key support levels and resistance levels. Wait for confirmation on your trades and always have a plan, where to enter, where to exit and what your risk is.
Please feel free to add the levels to your charts.