Gold Technical Analysis: High-Level Resistance Emerges, Focus onGold / U.S. DollarFOREXCOM:XAUUSDXAUUSD-ElizabethGold Technical Analysis: High-Level Resistance Emerges, Focus on Continued Pullback at the Start of the Week Market Review: Gold suddenly turned downwards at the end of last week, and the key resistance level of 4210 we previously identified proved accurate. On Friday, gold prices reached a high of 4211 before retreating, breaking through the important 4100 level and ultimately falling to around 4032, resulting in a large bearish candlestick on the daily chart. This significant decline has raised market concerns about whether a continuous downtrend will form on the daily chart. Technical Analysis: Daily Chart Analysis: Observing the daily chart, it is clear that the price highs have been gradually shifting downwards. This means that after encountering resistance at the three-point line (referring to the three key support levels), a second downward reversal is likely to occur. Currently, the fast and slow lines are still above the zero line, indicating that even if there is a decline, it is temporarily characterized as a pullback rather than a trend reversal. Combined with candlestick analysis, the important support of the trendline is located near the $4000 psychological level. This is both our main target for short positions this week and a key position for attempting to establish long positions. If this support level is breached, gold prices could further decline to around $3890, near the lower Bollinger Band. Key Resistance Level Analysis It's worth noting that the halfway point resistance level of Friday's large bearish candle is precisely at $4130, which also coincides with the highest point of the rebound after the sharp drop on October 21st. If gold prices can regain and hold above this level, it would signify the end of this round of correction. Short-Term Trading Structure After a slight rebound at the open this morning, gold prices continued to fall under pressure, with the $4110 level forming effective resistance. Observing the 1-hour chart, gold is forming a head and shoulders pattern. As long as the price remains below $4150, this bearish structure remains intact. Even if a strong rebound occurs, as long as it doesn't break through the $4150 resistance, it should be considered a shorting opportunity. Trading Strategy Overall Approach Today's core strategy is to sell on rallies. Although there is a technical rebound demand after Friday's sharp drop, the rebound strength is expected to be limited. As long as the key resistance of $4111 cannot be effectively broken, any rallies should be opportunities to short. Specific Trading Suggestions Short Position Strategy: Sell gold in batches around 4110-4120, with a position size of 20% of your capital. Set a stop-loss of 8 points. Target price: 4080-4060, with a further target of 4030 if the price breaks through. Long Position Strategy: Buy gold in batches around 4035-4040, with a position size of 20% of your capital. Set a stop-loss of 8 points. Target price: 4060-4080, with a further target of 4090 if the price breaks through. Risk Warning: Investors must strictly control their position size and adhere to stop-loss discipline. Avoid holding losing positions. Specific entry points need to be adjusted based on real-time market movements. This analysis is for reference only. Key Resistance Level: 4110-4150 Key Support Level: 4030-4000