12.23 Gold (XAU) Evening Perspective

The price of Gold (XAU) has broken through the previous rectangular consolidation box, establishing an upward trend channel characterized by a large bullish candle followed by a small bearish pullback. The 30-minute cycle has simultaneously formed an ascending wedge acceleration pattern, solidifying a major bullish tone.

4500 serves as a dual resistance level at the trend channel and the upper edge of the wedge. When the price approaches this level, a divergence is observed on the 1-hour chart, along with small bearish patterns such as doji and spinning tops near 4500, indicating a loss of upward momentum in the short term.

Previously, around December 13, a similar pattern and indicator resonance signal appeared, after which the price entered a consolidation phase. This time, the signal appears at a higher price level, making the pullback risk more apparent.

The short-term stagnation and the divergence in long-term patterns and indicators create a resonance, suggesting that the market may shift from a unidirectional rally to a pullback or consolidation.

The 4500 level also represents the upper edge of the ascending wedge. In the short term, there may be a final attempt to test 4500, but due to the pressure from the 1-hour level's pattern and indicators, a sustained rally after the peak is unlikely, with a high probability of a rapid decline.

Overall, the market is dominated by the 1-hour level, with the first pullback target looking towards 4450. If this support level fails, further downside probing towards 4405 resonance support is anticipated.