I’m expecting gold to penetrate the [I]first support zone[/I] and test the 1,065 level in the next 2-4 months.
• If 1,065 becomes strong support, I will be a [I]cautious buyer[/I] as price rises above that level.
• If the 1,065 support level is broken decisively, I think the 1,000 price level will be tested. I then expect some penetration of the [I]second support zone,[/I] but I will not be a buyer within that zone.
I will wait for price to move back above 1,000 and establish 1,000 as strong support. If that happens, I will be a strong buyer above 1,000 as price is rising (as noted by the red ellipse on the chart).
Note: I do not trade in and out of gold on a short-term basis.
All of the above is part of a long-term bullion accumulation strategy.