XAUUSD - KOG REPORT!

KOG Report:

In last week’s KOG Report we said we didn’t have much confidence in the bullish move from the week before and were expecting a move to the downside. We suggested caution as there was a pattern that suggested a potential break of 1755 so we gave the resistance levels above and illustrated the 1806-10 region to look for a reaction in price and possible rejection. We wanted lower pricing and gave a reaction region of 1760-65 where we were hoping for a tap and bounce back to the upside.

As you can see, it was a perfect point to point, LEVEL TO LEVEL move, resistance held, Excalibur confirmed, and we got the move into the support levels below with then another TAP AND BOUNCE back to where the price is now. A fantastic week in Camelot, not only on Gold with Excalibur hitting and completing numerous targets, but also Silver, US30, GJ and Oil to name a few.

So, what can we expect in the week ahead?

We’re going to start again this week with suggesting caution on the markets! There is a lot of news this week that will cause volatility and choppy price action as well as potential extreme swings. Markets have been lining up for a big move for a few weeks so expect the unexpected in the coming weeks.

For this week we have extended the range we identified in early November which you can see the price has been playing well in. We’ll again prefer to see this tap that high in the early sessions before a potential reaction in price to give us the opportunity to short back down into the support levels below. So the 1806-10 price region is again the key resistance level for price to stay below and for us to see any attempt at the bearish move we’re looking for.

The path shows the support level of 1770-75 as the first key level we would like to see, we will of course be using Excalibur to guide us which will give us more clearer and precise levels to target. This level of 1770-75 is important support this week, price needs to stay above this to the resume the swing to the upside and any attempt to break and hold above 1800!

Now, we have also highlighted a lower level for a potential swoop of liquidity which is sitting just below the 1750 price region, due to the news events this week these extreme levels are very much possible, so please be careful with your entries and be patient. We’re expecting ranging, whipsawing, choppy price action this week so your risk model is really important as well as your lot sizes. They’re going to be grabbing liquidity so spikes up and down are very likely.

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As always, trade safe.

KOG