XAUUSD - KOG REPORT!

Gold aggressively broke the 1795 resistance level on Friday to close above. In last weeks report we highlighted the potential for higher pricing and illustrated the potential reversal zones. Unfortunately we didn’t get the resistance we wanted to take the short at the 1795 level so we stayed away from the trade. We suggested that breaking the level will lead the price to target the 1808-10 level as we had an Excalibur target there and that breaking the level of 1814-18 could lead to even more increases in price. We closed just short of 1818!

What can we expect in the week ahead?

We’re looking at the potential daily trend which shows we have room to go higher. We’re looking at the wedge which broke to the downside (a potential bear trap) and then aggressively pushed up breaking the key resistance level. We would expect a small retracement during the course of Monday where we’ll be looking at the 1805-1802 levels to hold as support. As long as these levels hold its likely we will see more bullish momentum in Gold for the short term with the first resistance being 1820 and the second immediate resistance being around 1830. 1830 is a strong level, we would like to see some resistance here, this is also the daily double top which it could be going to test. Breaking above the level and we can see the complete trend resistance is around the 1850-60 price points.

As usual we update as we go along on a daily basis and the daily KOG analysis will give us a more up to date and clearer picture as we progress through the week. For now, we’re looking for a short term retracement so any short trade will not be held for long.

Breaking above 1830 or staying below 1830, that’s what we need to keep an eye on.

We've added the hourly chart which we have been publishing most of last week.


As always, trade safe.