THE KOG REPORT THE KOG REPORT:
In last week’s KOG Report we said we would wait for the market to open, then based on the defence boxes breaking, decide the course of action. We opened and completed all the target levels above in the first session of the week, ultimately resulting in the break above. We then updated traders with the plan following the Red boxes and indicators, targeting the higher levels until we released the FOMC KOG Report on Wednesday. In this report we the support level that needed the breach, which didn’t happen, instead, giving us the long trade again to target those all time highs and beyond.
The pivotal moment came on Thursday when we cautioned all long trades and told our team to expect the flush. Within a couple of hours of that message, we saw the inevitable, a profit taking event like no other. We caught some of the move, we caught some bounces, and we completed the outstanding Excalibur target sitting at 4890 as a bonus.
Hopefully, the analysis given kept you in the right direction in unprecedented waters.
So, what can we expect in the week ahead?
For this week again, we want to see how the market opens and reacts to last week’s move before getting involved. Due to the movement we’re seeing, the levels are extended and the regions are wider apart. We have the lower level of 4835-50 which if supported in the early sessions could give traders the bounce that is needed to then attempt some form of retracement on the move.
The level above sits at 5006-20 which is the key level and will need a forceful break above to then target higher pricing. Failure to do so can form the swing bears will want to see to take this further down into the 4670’s and below that 4580s regions which is previous swing high on the daily chart.
We’ve given the red boxes again with the potential path and the key levels. If you look at the chart, the extreme level for bulls here is sitting below the 4600 level which is where, if targeted we will be waiting to see if we can scale in based on the RIP.
It’s a difficult one to decipher but if please remember, in order to go higher, we will need to see a clean reversal formation with all tools aligned. Otherwise, we have a short-term structure change in play with the 5175 region being the line in the sand for bears. Above that, we’re likely to create another all time high.
Let’s play it day by day and we’ll update you as usual with our levels, red boxes and red box targets which have been proven to keep traders in the right direction of the markets.
RED BOXES:
Break above 4904 for 4935, 4955, 4983 and 5002 in extension of the move
Break below 4880 for 4863, 4851, 4830, 4810 and 4790 in extension of the move
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As always, trade safe.
KOG
