12.22 Gold (XAU) Afternoon Core Insights

The flag breakout has propelled the gold price to a high of 4420, which is the core driver of this round of increase. After the breakout, a series of large and medium bullish candles have accelerated the upward movement, with moving averages displaying a steep bullish arrangement, indicating a complete release of short-term bullish momentum.

A small bearish doji star has formed at the high of 4420, temporarily putting bulls and bears in balance. If small bearish and bullish candles continue to form, one must be vigilant for the potential development of a evening star pattern.

4400 is the current key support level; as long as this level is held, there is still momentum to challenge the previous high. Before a clear reversal signal appears, maintain a trend-following bullish strategy.

In terms of operations, go long directly at the 4400 line, with quick in-and-out trades; if it breaks down, 4375 serves as the second support buying point, with stop-loss set 5-8 points below the support, targeting 4415-4420, and if broken, look towards 4430-4440. $BTC