12.16 Gold (XAU) Afternoon View

Gold (XAU) started a strong upward trend from a low of 4190 on December 11, reaching a peak of 4353 on the 13th. The moving average system during this phase is in a bullish arrangement, forming a clear short-term upward trend.

After peaking, the price quickly fell back, with the M20/60 moving averages turning down, marking the official end of the original short-term upward trend, and the market entering a correction period. At the same time, the secondary indicators showed significant divergence, and the indicators continued to run downward, reflecting that bearish momentum is still being released.

From the perspective of cyclical linkage, the 1-hour cycle confirmed the mid-term logic of 'rally-top divergence-trend reversal'; the 30-minute cycle disassembled the correction process into the rhythm of 'sharp decline-small rebound-further decline', and currently, there has not been a clear stabilization signal, and the short-term bearish market pattern has not changed.

Operation suggestion: Short at the 4300-4305 line, with targets at 4273 and 4265.

Pay close attention to the 4265 level; if support holds, a technical rebound at the 1-hour level may occur. If it breaks down, the correction range will expand to the 4236-4200 interval.