In last week’s KOG Report we said that if the price pushed up into the 1878-85 region, we would be looking for resistance around there to then take a short on Gold down into the 1860 and below that 1855 price points. During the course of the move, we updated followers saying we would not be going long on Gold at those support levels as we identified a structure on the charts which was telling us we will see another swoop of liquidity from below. This gave us move down into the 1805 region where we finally completed the move.
For this week we’re going to keep it short as again not much has changed! We’re still playing the 4H range and we’re still swinging up and down aggressively within it. We’re going to say expect more of this to come in the week ahead, the markets are extremely volatile and although we’re getting big moves on the swings, they’re making it difficult for traders to trade the complete move in one go.
So, what can we expect in the week ahead?
We’re still overall bearish on Gold so will stick with that view for now. We can see there being potential for a move to the upside which would be fantastic tapping into that 1860-75 price region where we can then see another aggressive price reaction. We have targets below but want to see how we start the week, focusing on the 4H chart structure and Excalibur to guide us. We’ll stick with longs level to level with the view to get another long-term short entry from the top. Whether we get it or not, remains to be seen!
So, we’ll trade it with two scenarios in mind based on how the market opens and where we go first.
Price opens and pushes down into the 1835-30 support region. This is where we will be looking for strong support and feel an opportunity to then go long could be on the table targeting the 1850 level first and above that 1860-65. We would then like to assess the price action at the above levels looking to take our short entry if we’re satisfied!
Price pushes up on opening, we will wait for the price to attack and try to break the 1850 level. If it does and 1845-50 support is confirmed, we will trade this level to level to the upside looking for the first target of 1865 and then above that 1875-80. Those higher resistance levels are where we will be waiting for confirmation of a reversal to then take the short entry back down targeting 1835 and below that 1810.
As we said, we’re going to keep it short this time. The markets are very volatile and aggressive, and it doesn’t look like they’re finished yet! We had another good week and don’t want to give anything back to the market so please trade carefully if you are going to trade.
Hope this helps in preparation for the week ahead, we will update you as we go along as we usually do.
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As always, trade safe.