THE KOG REPORTTHE KOG REPORT:
In last week’s KOG Report we said we would ideally be looking for price to attempt lower and reject at the red box giving us the opportunity to long back up into the key levels following the red box and Excalibur targets. We did open with a huge spike down, into the 2nd region we wanted and managed to the move we giving us a great start to the week. As you can see on last week’s chart we broke above the red box which meant shorting was not on the cards, and a continuation into the next level would be a preferable trade, also working well. The NFP bias was bearish below the red box, again, tap and bounce from Excalibur giving the move downside, but not completing at the level we initially wanted.
Not a bad week at all in Camelot.
So, what can we expect in the week ahead?
For this week we would expect cleaner price action but there isn’t a lot of news so we may see some ranging and sudden burst of volume which will be needed to drive price out of the range.
We have support at the 3330 level and the extension level which is around 3210, which if spiked and held, should give us a move into the higher red box level and resistance 3345-50. There is another extension level above, 3360-65, which, if there was a bias this week would be the bearish below level. This level, if approached needs to be watched carefully for a potential RIP and needs to be broken for us to see higher pricing in gold.
Volume indicators are suggesting a potential pull back on the open, so let’s see if we can find that support and as long as we don’t break below 3310-6 we may just see a more range play between 3365 resistance and 3310 support.
It’s a bit conflicting on the charts this week which is why we’ll say let’s play it day by day and we’ll update every one as we go through the week.
RED BOX TARGETS:
Break above 3350 for 3355, 3360, 3362, 3365, 3374, 3388 and 3396 in extension of the move
Break below 3335 for 3331, 3324, 3321, 3310, 3306 and 3293 in extension of the move
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As always, trade safe.
KOG
