Wait for price to settle before taking longs

Important

It looks like there is still room for this to go lower but the pattern is complete. As we suggested earlier, small lots allow you to move with the markets without panic and emotions taking control of your trading. Any trades in this market should ideally be smaller lots than usual so you can be flexible. The way its moving targets will get hit, however, before it reaches targets it will make sure it triggers stops and stop orders. Where are you would usually trade 0.10 lots think about reducing that to 0.2/3 lots

Daily close is really important. Close below and we open up those lower levels like we said in the KOG report.

Can not say this enough!! Charts are moving in their directions but don't let anyone tell you trading this is easy!! Markets are EXTREMELY rough and aggressive!

Lots sizes and money management are very important if you want to survive these conditions

The lower target is open on Gold which is also the the trendline resistance level. Its very likely Gold will want to target this level.

If this level breaks the bull run is over. We have FOMC tomorrow so expect there to be movement today before the price settles into a range ready for FOMC. This isn't the time to try and catch the big move with big lot sizes, you can see they're going to make sure they stretch the buyers out before they move the price. Retail is going to get caught in this move so money management and risk management is key to being able to play this during this time.

KEY SUPPORT LEVELS:
1797-5
1783

KEY RESISTANCE LEVELS:
1805
1822
1835

Silver - This chart has moved exactly how we intended however concerning it has been. Excalibur is indicating some more movement down on this so we'll follow the path. Support lies just below where these is a potential bounce on the horizon.

NOTE: This isn't the time to go short on Gold or Silver. The moves have happened, now is the time to be patient and wait for both pairs to find their intermediate support levels

Gold is now hitting the trend line support. We're still not happy with this price action and not ready to start committing to long trades just yet. Any long trades should be small lots with strict risk management to test the levels.

There is indication of a move upwards, how far though we don't know yet. The problem is we have FOMC tomorrow so if they really want to make buyers sweat they can hold the price down here below 1795 and just consolidate.

Again, as we've been saying, very difficult market to trade, please trade this carefully. Our honest opinion is to sit this out until after FOMC.

We'll be back tomorrow with our usual FOMC KOG Report and update on our plan and if we will be taking any trades.