In last weeks KOG Report we said we would like to see completion of the bearish pattern on the 4H chart but would be anticipating an attempt to grab liquidity from above. We said we would be waiting for an attempt at 1800 and above with our target initially being 1817. So we had a lower level we were looking for to support which we published on the KOG Report where we suggested a long trade would be possible. You can see we did hit that level and the price turned giving an opportunity to long the market. However, there was a bearish pattern which formed on the chart which we thought would give a deeper pullback if completed giving us a lower entry for the long. For that reason we suggested traders be careful going long as there could be a bit of a flush on the price. The concerning thing is the pattern is only half complete giving a double bottom and turning for the key level support of 1785. So we didn’t get our lower level and we didn’t get our higher level, instead we’ve had more ranging price action gradually taking us up to close above 1800.
So what can we expect in the week ahead?
We’re going to do things a little different this week as it’s the end of the year and we really don’t want traders to get caught in the wrong way of the market. We’ve attached the 12H chart and plotted in the key levels that we need to look at for the potential rebounds in price. This chart is showing the start of a double top which we need to keep an eye on. If this continues and breaks the neckline there is a possibility we will see an attempt at a bearish monthly close on Gold. Please keep this is mind.
Below is a 4H chart. We can see on this chart there is a potential double top forming on the 4H timeframe with support being 1800, 1795 and below that 1785. 1785 is the level we need to break to make bulls sweat a bit. We have a lower support level below of 1760-65 and that’s would also complete the Adam and Eve we identified earlier last week.
Looking at the 12HR chart we can see a similar scenario on a larger timeframe, a potential double top forming with the neckline needing a test. We have highlighted the previous structure on the 12H chart if you look back to last year and see a similar move happened with the formation of the double top on this time frame.
We’re remaining bearish on this with any long trades being taken from key support levels and protected as soon as we can. We would suggest caution, look for support levels to hold with 1760-65 being the lowest support level to go in long. There are a lot of buyers in the market so don’t rule out an attack on the SLs and BE traders who are holding longs from below. Its going to be a difficult week to trade, they have accumulated for months and the range has buyers below and sellers above. Liquidity on both sides so there is potential for a big move to come.
Our plan:
We are in long, however, the key support is just below this level. Our trade is protected and we have taken partial profits. We would expect there to be another attempt to target this level due to the potential double top and the 1810-12 level holding as resistance again. What we want to see is if the price needs more momentum to break this level this week. We have a higher level of 1817 that we would like to see achieved and above that 1824. These levels will be our immediate targets for longs and we'll make sure to hold portions of lower entries just in case it continues going up. If we go straight up we’re already in, if we go down based on what the chart is suggesting then we’ll look to get in again.
We’re looking higher for our shorts as long as the price stays below the 1830-35 and above that 1850-55 price region. Breaking and closing above this level will change the structure again and its likely bulls will take this a lot higher. The chart illustrates our key levels for testing the short trades as we still have our lower target of 1735 that we would like to see completed in the coming weeks.
As always, trade safe.
Please do give us a like, comment and follow.
KOG
So what can we expect in the week ahead?
We’re going to do things a little different this week as it’s the end of the year and we really don’t want traders to get caught in the wrong way of the market. We’ve attached the 12H chart and plotted in the key levels that we need to look at for the potential rebounds in price. This chart is showing the start of a double top which we need to keep an eye on. If this continues and breaks the neckline there is a possibility we will see an attempt at a bearish monthly close on Gold. Please keep this is mind.
Below is a 4H chart. We can see on this chart there is a potential double top forming on the 4H timeframe with support being 1800, 1795 and below that 1785. 1785 is the level we need to break to make bulls sweat a bit. We have a lower support level below of 1760-65 and that’s would also complete the Adam and Eve we identified earlier last week.
Looking at the 12HR chart we can see a similar scenario on a larger timeframe, a potential double top forming with the neckline needing a test. We have highlighted the previous structure on the 12H chart if you look back to last year and see a similar move happened with the formation of the double top on this time frame.
We’re remaining bearish on this with any long trades being taken from key support levels and protected as soon as we can. We would suggest caution, look for support levels to hold with 1760-65 being the lowest support level to go in long. There are a lot of buyers in the market so don’t rule out an attack on the SLs and BE traders who are holding longs from below. Its going to be a difficult week to trade, they have accumulated for months and the range has buyers below and sellers above. Liquidity on both sides so there is potential for a big move to come.
Our plan:
We are in long, however, the key support is just below this level. Our trade is protected and we have taken partial profits. We would expect there to be another attempt to target this level due to the potential double top and the 1810-12 level holding as resistance again. What we want to see is if the price needs more momentum to break this level this week. We have a higher level of 1817 that we would like to see achieved and above that 1824. These levels will be our immediate targets for longs and we'll make sure to hold portions of lower entries just in case it continues going up. If we go straight up we’re already in, if we go down based on what the chart is suggesting then we’ll look to get in again.
We’re looking higher for our shorts as long as the price stays below the 1830-35 and above that 1850-55 price region. Breaking and closing above this level will change the structure again and its likely bulls will take this a lot higher. The chart illustrates our key levels for testing the short trades as we still have our lower target of 1735 that we would like to see completed in the coming weeks.
As always, trade safe.
Please do give us a like, comment and follow.
KOG
Comment:
We'll try our best to update with any changes as we go along.
🔵 FREE TELEGRAM CHANNEL: t.me/KnightsofGold
🔴 TWITTER: twitter.com/knightsofgold2
🟢 INSTAGRAM: www.instagram.com/knights_of_gold/
🟡 Disclaimer: Not financial advice. For educational purposes only.
🔴 TWITTER: twitter.com/knightsofgold2
🟢 INSTAGRAM: www.instagram.com/knights_of_gold/
🟡 Disclaimer: Not financial advice. For educational purposes only.
