Gold Chart of The Week

Each Week Lo ngleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (Sept 30^th through October 4^th)

In the upcoming week, global markets have much to look forward to. In the United States, we will hear from multiple FED Members including Ben Bernanke and will also have to deal with the potential for a government shutdown in Washington. If that were not enough, Friday will bring the Non-Farm Payroll numbers that traders always look forward to. In Europe, the ECB will report their Interest Rate Decisions and we will also hear from the ECB President in a press conference that follows. The same decisions are expected this week in Australia and in Japan.

The most important information over the next two weeks will be the debate in Washington as once again Democrats and Republicans have waited until the last minute to debate major differences on the debt ceiling. The story on whether the government will officially shut down can and likely will change on a daily basis until the final deadline is upon us. We plan to rely on technical analysis as usual until the final decision is made.

The chart above is a daily chart of the December Gold Futures. You will notice a pennant formation has formed using the August 28^th high and the September 18^th low prints. With most of the major Simple Moving Averages (20day, 50day, 100day, and 200day ) converging in a $10 range above the current price, it would appear that Gold may continue to be pressured in the early part of the week. Using these moving averages and the pennant formation should provide traders some very nice opportunities to day-trade ranges until prices either drop below the support trendline or break out and close above $1350.

If you would like to discuss trading in the Futures and Futures Options markets with me, please feel free to call or email me directly. You can reach me directly at (888) 272-6926 or by email at bbooth@longleaftrading.com.

Thank you for your interest,

Brian Booth

Senior Market Strategist

bbooth@longleaftrading.com

888.272.6926

** There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data contained in this article was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Information provided in this article is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this article will be the full responsibility of the person authorizing such transaction.

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