XAUUSD - KOG REPORT!

KOG Report:

In last week’s KOG Report, we said we would be looking for the low to be attacked in the early sessions and based on support we would be looking for the price to go to the upside, initially into the 1995-2000 region and above that 2010-12. We said we would like to see a reaction in price at the higher levels before attempting the short back down into the lower support regions.

As you can see, price played the levels as we expected apart from the fact that we couldn’t sustain a break of the range, which continued into the close. All in all the plan worked along with the daily levels and KOG’s bias, giving pin point entries on the move.

So, what can we expect in the week ahead?

We’ll start by saying we have FOMC this week and as you can see the market is preparing for it. We can expect this range to continue in the early part of the week, especially with bank holiday in the UK on Monday. Usually, after a Bank Holiday we will see volume hit the markets so we would be looking for a similar set up to last week, where we will be looking for the low to be attacked before giving a potential move to the upside. What we want to see is how these higher levels react if price get’s there and if we can remain within the bias levels for this week. There is still a lot of void below which needs visiting at some point, but due to this range they will likely want to take liquidity from both sides again before they make the move. For that reason, it’s best practice to either stay out of the markets until after the FOMC Release where the chances of getting better entries are increased, or, use the range high and low to test the levels expecting the whipsaw either side.

It's going to be a difficult week to navigate, especially if you’re a new trader so please control your lot sizes and make sure you have a strict risk model in place. We’ll keep it short and simple this week as we’re inclining towards a similar setup to last week, however, we will need to see how they open and how this range breakout is activated.

As usual, we will update the analysis with any changes during the course of the week as well as in the morning reviews with the bias and key levels.

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As always, trade safe.

KOG

Comment:

This idea is completed. We wanted to short from the higher levels into the lower support which was achieved. We then had a target of 2005-7 in Camelot which based on support gave the long trade into the level and completed. We're now preparing for post-FOMC where we will start to hunt again.