XAUUSD - KOG REPORT!

KOG Report:

In last weeks KOG Report we said we would be looking for the support levels to hold to give an opportunity for the long trade before we then see a reaction in price. We then said we would be looking at the higher levels to confirm the resistance before we attempt to take the short trade back down.

We plotted the immediate support level with a circle around the 1950-55 region and then gave the two higher levels we would be looking for, also circled on the chart. There were only 3 points of contact we were looking for combined with the weekly chart level we had added in March for the bullish target.

As you can see from last weeks KOG Report, we completed a point to point, level to level move timed to perfection again, just like we do day in, day out in Camelot. 4H chart levels were completed as well as the weekly target plotted on the 19th of March where we got a TAP AND BOUNCE.

So, what can we expect in the week ahead?

We’ll start by saying, due to it being the holiday weekend we’re very likely to see gaps on opening across the market, especially due to the NFP release on Friday which happened while many instrument were closed. For that reason, we’ll say take this as reference for Monday and we will update it on Tuesday once we have a clearer picture.

For the week we will be looking at the support levels 1980-85 as the first point of contact, this is where we need to see a gap down to (if it happens) before an attempt on recovery. Below there we have further key level support around the 1960-55 level, we want price to stay above this level to resume the move to the upside, otherwise we may see a deeper correction. We have an Excalibur target below which hasn’t been hit, this is something we will be looking for in the early part of the week if the price continues the retracement.

The higher levels are now the target levels for the long trades, this is based on clean support and any gaps being filled in the early part of the week. The ideal target here for the long trades is first 2035 and then above that the 2045 level. We’re again long level to level with the plan to short the market from higher up, if we get there.

Best practice in this environment is to sit out the opening and the early sessions, let them move the market and create the mess they want to, once settled, then start looking for the set up. We’ll be doing the same in Camelot targeting the Excalibur targets once the price market has found its feet.

Expect another week of aggressive, whipsawing and choppy price action, so please be careful, control your lot sizes and make sure you have a risk model in place.

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As always, trade safe.

KOG