Technical Analysis: Spot gold may retest the $4,120 resistance level

1. Spot gold may retest the resistance level of $4,120 per ounce. If the gold price can effectively break through this level, it is expected to move further upward, targeting the $4,141 to $4,174 range.2. Currently, the gold price is considered to be operating in the wave c phase, which is the third wave of the irregular flat consolidation pattern since the low of $3,959 on June 25. In theory, this wave has the momentum to extend to the target range of $4,140 to $4,175.3. The pullback triggered by the $4,120 resistance level may have ended, as previously the gold price stabilized near the support level of $4,030. However, if it falls below $4,030, it may trigger further decline, with the target pointing to the $4,000 to $4,015 range.4. From the daily chart perspective, the nature of the current rebound remains unclear. A weak rebound may take two forms: first, as a correction to the downtrend since $4,382, with the rebound possibly ending in the $4,141 to $4,233 range; second, as a correction to the longer-term downtrend since $4,889, with the rebound possibly extending to around $4,382.5. The wave structure shows that the downtrend since $4,889 may be brewing a reversal. This downtrend has exhibited a five-wave structure, where the decline of the fifth wave (wave e) is roughly equal to that of the first wave (wave a), a structural feature that increases the possibility of a trend reversal.