Resistance level-where bears are strong and bulls are weak, resistance level naturally forms. In practice, due to the consistency of public expectations, the following areas often become obvious areas of resistance:

On that day, the price of gold opened lower than the closing price of the previous trading day. There will be resistance here in the process of climbing. This is because after a night of thinking, both long and short sides reached a consensus on the previous closing. At the opening of the day, if the price of gold opens lower, it means that the selling intention is very strong. In the process of gold price rebound, on the one hand, it will be hit by new selling at any time, on the other hand, when it is close to the previous closing, the selling accumulated in the morning will play a role, making it easy for bulls to cross this mark.

It fell after the opening of the day. Because the opening price has been sold off a lot, there will be resistance to rebounding back here.

The reason for the formation of the previous high point is that there is an obvious backlog of selling here. When the gold price falls back and is blocked from rising again here, once approaching the previous high point, new short-selling forces will intervene and bulls will become cautious. There is an obvious M-head shape on the trend chart, and most of the time the high point on the right will be lower than the high point on the left.

Due to people's psychological function, some integer barriers often become important resistance when they rise.

The purpose of identifying the resistance zone is to sell at the highest point or the second highest point, which can generally be sold before entering the identified resistance zone. Or when the price of gold falls from a high level, it is sold for the second time near this high point.

Support level-the place that can't fall is the support level. Common support levels are as follows:

If it goes higher after the opening and falls back to the opening price, the support will be stronger because more deposits are bought.

If the price of gold falls from the previous closing height, the previous closing support is also strong.

The lower front side. The low point area formed last time will generally become people's psychological support level for the same reason as the resistance area.

The resistance of the previous high point is large. Once it is effectively crossed, it will generally be supported when it falls back again due to accumulated buying.

Identifying the support level is to try to buy in the low area.