XAUUSD - KOG REPORT UPDATE:

Quick look at Gold before we leave for the day.

As we can see we got the lower support on Gold that was mentioned in the KOG Report on Sunday which has now proved to be the short term bottom. We've anticipated the move up towards the 1835 level if that 1790 support held where we were looking for either a rejection in price or a break as we suggested yesterday. The break of the short term range gave traders the movement up towards the 1850 level which we said as long as the price stays below we would be looking for short it! The short gave a 90pip capture but the price has now stalled here.

Now we can see the immediate resistance levels and the immediate support levels below starting at 1835 and below that 1823. What we want to ideally see here is a retest of that 1850 level or a slight push above it and monitor the close. Right now we look like we're closing under the 1850 level which still aids caution as support targets below may not hold the price.

Tomorrow is going to be telling, the ideal scenario here for us is for the price to hold support below giving the opportunity to long the market back up towards the 1850 and above that 1865 price points before facing resistance. Resistance there and we may just look to short it back down into the low 1800s.

As we suggested, while the market is like this and with options expiry looming, we're trading this level to level using Excalibur to guide us. So this area above now is pivotal for Gold, 1850-65, will we close above it on the weekly and daily or not?! Tomorrow is going to be an interesting day on the markets.

As always, trade safe.

KOG