XAUUSD - KOG Daily Report

Last week we said Excalibur had left us a target above and we weren’t ready to see the decline we wanted. We expected the flush on the longs as we experienced during the week which gave buyers an ideal opportunity to take the long trade towards the KOG target zone. This zone we feel is still active so we would expect there to be some more bullish movement in gold over the coming sessions. We have an Excalibur target of around 1914-16 which we would assume is the next destination for gold. If you look back at our charts you will see the KOG targets on Gold are quite accurate so we put a lot of confidence in them when trading.

We identified what was potentially a 4H bull-flag which has now broken so immediate support stands at around the 1890-85 levels. This is going to be a very difficult week for traders on the markets as Monday is a bank holiday and also the end of the month. A lot of traders will be looking to see how this monthly candle closes before making further moves in the markets so we can expect Tuesday and Wednesdays volume to really move the markets.

Our plan:

The ideal scenario here would be for the price to open with a glitch up, hit our target and give us the opportunity to short it towards the support levels indicated on the chart. Either way we’re expecting more choppy volatile price action so we will only be trading with small lots.

If we get the pullback down to support levels below we'll test the long trade with an extremely small lot towards the KOG target above.

We would suggest you trade with caution up here and not long the market in the wrong zones. Always wait for a pullback or retracement before jumping into trades. We have KOG targets lower down so unless this breaks 1950 we're not to convinced of this bullish momentum.

Although we shouldn’t trade with bias, we are more inclined to stay short than to get caught in what could be a false move upwards and a bull trap. A lot of retail traders will now start getting confident in thinking this is the resumption of the bull run and as we know, they’re known to buy at tops and sell at bottoms. So as we’ve always done here, lets trade this carefully and not get stuck the wrong way.

Support

1890
1885
1873
1859

Resistance:

1913
1919
1935
1950-55

As always, trade safe.

KOG