THE KOG REPORTTHE KOG REPORT:
In last week’s KOG Report we said if we saw price attempt the order region resistance above 2450-55 and held, we say an opportunity to short the market back down into the 2430 level, and if broken the extreme level of 2407-10 which is what we wanted to target initially.
Ideally, we wanted the long trade to come from there, however, our bias target level bearish below was sitting at 2395, so we waited for that to complete, which it did. During the week we managed to get in on the long trade and as updated with the community, followed Excalibur all the way up into where we closed on Friday. It wasn’t an easy week, we stayed out at the right time however, and managed to stay the right side of the move.
So, what can we expect in the week ahead?
We have a lot of news this week which is going to drive the markets, even though we say it most weeks these days, we would suggest traders take it easy on the markets and don’t place all their eggs in one basket.
On the close we can see the 2430-35 region now accumulating the price which is causing a bit of a whipsaw. We have lower support sitting at the 2420-25 level which if held, is likely to continue to push this higher attempting to break above the 2435 price. Our initial level is the 2450-55 which we would like to see completed this week with the extension of the move into the 2465-8 region if they can take it there. This is the level, unless broken above traders may get the opportunity to test the short trade. Based on the above and as the path suggest on the chart, these support levels, if approached and defended first and unless broken can give us opportunities for further increases into but it’s that 2465-70 region that needs to be watched.
Due to a potentially low volume day tomorrow we can expect the whipsawing and choppy price action to continue, so we would suggest traders wait for the market to make it’s move rather than attempt trying to trade the range. Therefore, a break above 2437 would give more confidence in a move upside and a break below 2425 will give us more confidence in the price attempting to take the lower liquidity first.
KOG’s bias for the week:
Bullish above 2406 with targets above 2450 and above that 2465
Bearish on break of 2406 with targes below 2395 and below that 2365
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As always, trade safe.
KOG
