THE KOG REPORT THE KOG REPORT
In last week's KOG report we said to expect choppy price action, but we did not expect it to last the whole week! What a week however, the range allowing traders to trade within it up and down making the most of the levels on the boxes and Excalibur. We gave the weekly key level as 2620 which we said will need to break to go lower, otherwise, opportunities from that level were available and worked well.
On Friday we published the NFP report, again giving the key level for the push up 2625, this also worked well for traders, with the bonus of the short to end the week. A fantastic week for traders with us completing a phenomenal 37 targets across the markets!
We had that higher region of 2670 which however was not visited, so is it still available? Let’s dive in.
So, what can we expect from the week ahead?
This week we would expect this price action to continue, the range getting a little larger but the up and down movement making it difficult to hold position, at least for the first part of the week. We have that key level of resistance above again at 2650 with that level of 2670 still active on our books. For that reason, we feel this decline isn’t ready just yet, but the lower levels are available for consideration. Support below 2620 and below that the 2610 level are opportunities if we can continue this slow decline downside. We have the extension of the move at 2590 as key level support, so we feel that’s the ideal long trade for the swing up, if attacked.
Looking at the chart in more detail, and applying the red boxes, we can see we have defence above at 2635-40, which if held, can continue this move down into the red box 2625 as the immediate level for the range. A break of that level will take us further into breaker move 2610 and 2590 before any exhaustion.
As we close in to the festive period, we can expect volume to be thin over the coming weeks as well as sudden burst of profit taking, so please trade carefully for the remainder of the month, reduce your lot sizes and make sure you have a sensible risk model in place.
KOG’s Bias for the week:
Bearish below 2665 with targets below 2620 and below that 2610
Bullish on break of 2665 with targets above 2670 and above that 2685
RED BOXES:
Break above 2639 for 2650, 2660, 2663 and 2670 in extension of the move
Break below 2627 for 2620, 2610 and 2595 in extension of the move
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As always, trade safe.
KOG
