XAUUSD - KOG REPORT!

We'll revert back to our daily chart for this weeks KOG report highlighting the daily zones and trend. In last weeks KOG report we said we could see 1750 turning into a support level and the price was likely to go higher to test the 1785 levels as resistance. We said we would only be looking to sell based on successful resistance as we were still playing bearish on the Gold. We held tight for most of the week observing the ranging price action and on Friday we saw a good opportunity to add to our short positions for lower pricing which worked out well.

So what can we expect in the week ahead?

Although that daily candle closed with a long wick its still a concerning candle. We would expect the price to attempt to fill the wick of that candle at some point so for that reason we will be looking for the lower support levels to hold. We can see the price pushing down a little further as Excalibur in hinting at the 1745-40 as immediate levels. We also have that higher region of 1785 which we are not discounting, even though the price failed to touch it last week.

There are two scenarios here for both bulls and bears:

Scenario 1:

The price opens negative and comes down towards the 1750-45 levels. If the price supports here its likely we may see rejection on the price and then an attempt to go higher towards that 1765-70 level again to attempt to break it to the upside.

Scenario 2:

The price open positive and attempts to target that 1765-70 resistance. Based on resistance here we could see another opportunity to short the market again for lower pricing.

If you've followed KOG for the last year or so you'll know we've been very bearish on Gold shorting it at every opportunity from the 1960 levels. We are now approaching that time where we're holding shorts from above and any more short trades will be smaller in size because of where we are price wise.

We've added the 4H chart below to give you a clearer intra-day illustration of what we're looking at for beginning of the weeks trading sessions. As we usually do we will update throughout the week with any changes and what we're seeing on the markets.


Looking at the fundamentals this week we can see there is a lot of USD news and events, so again we'll be looking at choppy, ranging and whipsawing price action trying to catch traders out and get them stuck in the wrong way. Please trade this cautiously!!

As always, trade safe.

KOG