XAUUSD - KOG Report - Daily

Gold experienced extreme selling pressure during the last part of the week. As we highlighted in last week’s report, we were expecting the bearish move to happen, however, we didn’t expect it to flush the buyers the way it did. Unfortunately, the move caught us off guard and we weren’t able to catch it down. Luckily, any longs we had on Monday were closed in overall profit and the long we tested at around 1825 had a tight stop on it.

This is what we’re seeing on the daily chart for the coming week. We would expect there to now at least be some retracement on the bearish movement from last week, however, it would not surprise us to see this open tomorrow and potentially drop down a little further into that 1755-50 level before finding enough strong support to then begin the retracement. The level we’re looking at above is only 1790-95 for now. We would be looking to take a long towards that level at some point once Excalibur gives us the indication of a turn. As long as the price stays below 1820 our lower targets of 1720 and 1647 which we identified a couple of months ago are now active again and we shall be taking shorts to target these levels from strong resistance levels above. For now, because of the bearish volume and pressure the above targets have been put to one side until we see this really find strong support and turn to begin a new trend upwards.

The hourly and the 4 hour charts are suggesting what could be a channel formed which targets the 1710 levels but we don’t think it will go straight down into that level. That key level of 1795 on the daily will need to hold and could be a good opportunity to take a short targeting that level. We have posted a screenshot of the 1H possible trend below this analysis.

Support:

1763
1755
1750
1740
1723
1730 -Excalibur Target

Resistance:

1775
1780
1785-90
1810
1830


As aways, trade safe. Your likes and comments are very much appreciated.

KOG